April 9, 2021
I would like my comment on this rule change to be noted.
I support this rule change.
Such a rule change is needed to allow the swift and effective mitigation of risk presented by Supplementary Liquidity Providers (SLPs) who become overleveraged or are subject to stressed market conditions.
The proposed change will allow the Corporation to better insulate its members who have not exposed themselves to risk. This provides protection to the market and those with investment. The ability of the Corporation to act on an intra-day basis provides an immediate tool to stem potential losses. Swift action in this respect maybe the best protection from market instability spreading, due to the activities of a small number of individuals.
The new rule will place emphasis on SLPs to manage risk.
The proposed rule, together with other rule changes proposed during this calendar year indicates the Corporation takes risk mitigation seriously. It is noted that the rule does not prevent risk taking. Such an approach provides reassurance to investors and inspires confidence in the free market of the United States.