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Thad Hays Comment On Regulatory Notice 21-19

Thad Hays
N/A

FINRA has a scaling problem. A problem that is observed in FINRA's inability to provide oversight and accurately regulate institutions as global markets expand and overlap. Transparency in our markets is essential. Transparency with respect to short interest reporting is severely lacking. Not only just the typical direct borrow and short transaction but also the use of derivatives and other short arranging products are not reported. FINRA must work in conjunction with both domestic and foreign institutions and governments to diminish the ability of financial institutions to skirt the regulations set forth by the US Government. Increasing the frequency of reporting is not enough. Institutions have the willingness to take on enormous amounts of risk and then the ability to diminish that risk in the eyes of regulators. FINRA, and other regulatory agencies, either do not know where to look or do not care to look. Both scenarios are unacceptable. The inevitable cost of default from the mountainous risk being taken by financial institutions will have massive ramifications on the future of not only the American economy but the entire world economy. FINRA has an opportunity to make significant changes. Please leverage this opportunity to make real changes that will allow the American capital markets to scale with the increasing size of the world economy.