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Anonymous-CC Comment On Regulatory Notice 21-19


Good evening, I write to explain my frustration with the current market, some market makers as well as bad players. The United States stock market is currently very manipulated and it is becoming so obvious that I feel it is endangering the US stock market. Short selling has become a big problem for a few players out there. I believe they have made a lot of money and when caught the fines have been equivalent to pennies on what they made. There has to be more transparency as well as punishment if caught doing something illegal or malicious in nature. If opening a short position it should be required to disclose that position the same as a put if you are an instituational investor. I believe just as 13f filings are made when buying stocks this would give more transparency to what big players are doing. I believe that brokers and or apps in which you buy shares should all have pending options on and decided by the individual if these options are turned on or not. If I own something I should be able to choose if I want it lent out or not. Fines for pending shares that are not suppose to be lent should be very high to deter these companies from doing so freely with no recourse. Short positions should all be reported daily and if needed audited daily/weekly if the shorting hits above 15% of a free float. This would prevent excess shorting or naked shorting a company to death in hopes of profit. Dark pools present a huge problem for the retail investor in that our buy orders can be redirected to a dark pool. If our shares are going there we should have a full disclosure on all dark pool numbers and not have a hidden stock market that only the elite of wall street can access. How can we tell what is being shorted in dark pools if we have no access to such pools? I am currently invested in the market but watching crypto trading identical daily or meme stocks trading identical really leads me to believe that this whole game is rigged by a few bad actors. Minor fines will do nothing to deter these players and since that is the case I would advise to up the punishments for such actions if caught to prison/Major fines. Short positions in general are fine and I believe can be ok for the market. But who is betting on these shorts is it retail? Is it a market maker? A hedge fund? A bank? This is information that should be readily available and updated regularly if any given stock goes above a certain threshold. The question is how to get better reporting and I truly believe the only way to get better reporting is for audits. Every business gets them randomly. If say something we’re to appear off they should be audited. If it is found numbers do not ad up? Audits. I work in business/construction and audits are a part of my life. It is not excessive but it is random and done in person with someone from a governing branch.