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Kenneth Fleming Comment On Regulatory Notice 21-19

Kenneth Fleming

-Short positions should be reported on 13F's just like any other positions. -13F's should be updated daily. -Huge penalties for breaking the rules should be strictly enforced. The penalty should be at least double whatever the institution made from breaking the rule. If you continue to fine at an insignificant rate compared to the gains achieved by breaking the rules you are simply taking a cut of the illicit activity. The punishment must fit the crime to be an effective deterrent. Currently your fines are seen as a cost of doing business to institutions so they are not going to stop breaking the rules as long as it's extremely profitable to do so. -Rehypothecation must be capped. One legitimately issued share should only be able to be lent out and sold short once. Blockchain could be used to track all shares very easily. -FTD's should be reported daily and have to be covered in the same timeframe as would apply to a retail investor.