Feb. 4, 2024
Dear Securities and Exchange Commission, A self-regulatory organization (SRO) is once more proposing rule changes to avert breakdowns amidst "Market Volatility." I am strongly against this suggestion. SEC needs to perform its regulatory duties by addressing the significant risks posed by financial entities that wield substantial leverage with insufficient protection during market turbulence. The Options Clearing Corporation (OCC) is looking to bypass confronting the hazards associated with the excessive leverage used by these entities. The banking industry is already minimally regulated, and further deregulation only increases the risk of reckless behavior. Rules are crucial for restraining uncontrolled activities. Margin requirements are in place to stop banks and similar leveraged institutions from taking excessive risks. The OCC's responsibility includes safeguarding these highly leveraged banks at times of margin calls, a responsibility it finds unmanageable due to the enormity of the derivatives market, a market so large that even the Federal Reserve is incapable of managing its scale. Regards, Martin S.