Apr. 21, 2022
Dear SEC, Current market practices lack transparency and accountability and as a retail investor, I'm disappointed and extremely concerned that SR-NSCC-2022-801 is being proposed. This rule would increase avoidance of true price discovery through onward lending practices and it also removes the infinite risk of naked shorting entirely, which effectively sanctions the engagement of unsafe and harmful business practices routinely engaged in by large financial institutions at the expense of retail investors. This new proposal would give an even greater unfair advantage to market makers, who excessively naked short securities, thereby creating infinite downside for those on the wrong side of their shorting. How does this rule contribute to a "fair" market for the average retail investor? Failure to Deliver (FTD’s) are already "reset" through various methods such as derivatives, swaps and not allowing them to reach their 30-day mark where the security needs to be "delivered." This is very frustrating to see rules like SR-NSCC-2022-801 being proposed, as they only favor reckless institutions. Hopefully, the SEC will consider the words of retail investors on present and future regulations, as retail investors continue to get “shorted” financially throughout the investment world. I believe SR-NSCC-2022-801 is an insult to any individual investor who has ever purchased a security in our markets. This same policy has been proposed TWICE before under different incarnations, and has previously been "shot down" or revoked. Large financial institutions are horrified that they might no longer have the option of taking risky bets and not facing the financial or legal consequences of their actions, or worse yet, being endorsed in said potentially fraudulent actions. The ability of market makers and financial institutions to propose such blatant exploitative methods repeatedly, just waiting for the day one of their biased and unfair proposals slips through, goes against the fiduciary duty the SEC has to protect retail investors from predatory business practices that adversely affect their retirement pensions which in most cases, aren’t self-directed. This leaves retail investors heavily exposed. I would firmly ask that you deny the SR-NSCC-2022-801 proposal. As a retail investor, I implore you to take this threat to the sanctity, fairness, and transparency of our markets for what it is - a threat against every single retail investor. Please do your part and put a stop to SR-NSCC-2022-801. Sincerely, A Concerned Investor