April 9, 2021
As a finance major entering the banking industry after school I have a clear interest in the future health of financial markets. While I may stand to gain from a system biased towards sophisticated investors, I strongly support this motion as it will help to ensure long term growth in financial and economic markets. In my estimation, the current system allows for institutions to operate in the dark where massive leverage can be hidden and leaves more room for market manipulation. This rule would assist in bringing transparency to the market reducing volatility through more realistic expectations and promote fundamental analysis. Furthermore, the rule would help to level the playing field and encouraging the high levels of retail investment we have seen grow over recent years. Not only has that capital been beneficial to the markets, but it now makes up a material portion of the total capital in the market, by continuing to ignore the retail investor, confidence may be lost creating even more potential for contraction which combined with the amount of leverage in the market could prove disastrous.
Thank you for your consideration,
C.J.