Feb. 4, 2024
Good Afternoon, I highly disagree with the contents of SR-OCC-2024-001 in regards to the reduction of margin requirements in the event of market volatility. Reducing these margin requirements only allows for higher risk taking by big market players. This creates a space where the most advantaged players are even less likely to be punished on high risk actions in our market. There is also the risk of an undefined “volatile market.” What determines when a market is sufficiently volatile for these requirements to suddenly be reduced? This grey area can easily be taken advantage of in the current market ecosystem as well as undermine household investor’s confidence in U.S. markets. I believe that reward should match risk and currently SR-OCC-2024-001 seeks to greatly reduce risk for large market players while highlighting their rewards. Sincerely, A Household Investor