As a mostly outside observer who has be diving into the inner workings of the mechanics behind short selling, I've noticed that the lack of transparency effectively makes it impossible to determine the overall value of the short positions that exist, along with a lack of information about how many synthetic shares are created and how positions are opening and closing on a regular basis. This lack of transparency makes it impossible to understand the ramifications of rampant short selling that appears to be occurring in the market currently. Reporting needs to be reduced to a daily cadence in order to prevent any wrongdoing on the part of the structures that currently exist. These reports need to contain information on short positions synthetics and share lending that can be used to determine an aggregate position of all shorts on the market to prevent any wrongdoing from occurring. Share lending happens largely at the expense of the client who is lending if it is being used to establish a short position on the relative stock. Ideally shares would be tracked as some sort of non-fungible token that would prevent this sort of issue from happening in the future.
Jon Reyes Comment On Regulatory Notice 21-19
As a mostly outside observer who has be diving into the inner workings of the mechanics behind short selling, I've noticed that the lack of transparency effectively makes it impossible to determine the overall value of the short positions that exist, along with a lack of information about how many synthetic shares are created and how positions are opening and closing on a regular basis. This lack of transparency makes it impossible to understand the ramifications of rampant short selling that appears to be occurring in the market currently. Reporting needs to be reduced to a daily cadence in order to prevent any wrongdoing on the part of the structures that currently exist. These reports need to contain information on short positions synthetics and share lending that can be used to determine an aggregate position of all shorts on the market to prevent any wrongdoing from occurring. Share lending happens largely at the expense of the client who is lending if it is being used to establish a short position on the relative stock. Ideally shares would be tracked as some sort of non-fungible token that would prevent this sort of issue from happening in the future.