Comment Text:
Suspending swaps data reporting can only serve entities that benefit from having certain positions hidden. The most obvious example I can imagine would be large short positions. Hiding swaps data for these positions keeps that large obligation off the books. I suspect that there are a number of American financial institutions/hedge funds who are bad actors and are hiding their short positions in swaps. This has allowed them to continue operating when they would otherwise have been forced to close the short positions to meet margin requirements.
In essence, allowing these positions to be hidden allows these bad actors to steal from other traders by keeping stock values artificially low.
Regardless of any conjecture I may present, the primary concern for the CFTC should be at least having the appearance of being fair. Policies such as suspension of swaps data reporting unfairly benefits large Wall Street companies that already have every other imaginable advantage over "the little guy." It looks more and more like the CFTC is in the pocket of Wall Street by blindly allowing them to fleece anyone who's not an insider. This erodes confidence in America's financial institutions. Once the erosion has reached a certain point, the damage is irreversible and the game stops. Everyone loses. Stop the injustice before everything comes tumbling down.
