Feb. 28, 2024
Dear SEC/Recipient, im a concerned Citizen from Switzerland, long time household investor into the US stock market and a big supporter of transparency. If there is no transparency, only darkness persists. While acknowledging the purpose of the rule to codify OCC’s process for making adjustments during high volatility periods, the lack of transparency, especially the redaction of "specific details" related to the calculation of parameters and margin thresholds, raises serious concerns - this is not a rule that should be implemented in its current state. The consistent use of "idiosyncratic control settings", the concentration of significant decision-making authority in the hands of a "single FRM Officer", and the potential systemic risks associated with frequent adjustments during high volatility are alarming. Even the most basic ISO guidelines promote a four-eyes principle. Or should all imporant decision making be done by "one person" going by the same reasoning applied here? Jesus take the wheel? YOLO? What is the reasoning here? Placing a cricital decision in the hands of one person instead of promoting External auditing and supervision as a “extra line of defense” - ensuring that risks are identified and managed before they become systemically significant. The proposed rule poses a threat to reducing margin call requirements by granting the OCC extensive authority - to adjust margin thresholds based on undisclosed parameters during critical events - changing the rules mid game, in between the meals, making it completly untransparent and hidden with all it flaws. Furthermore, the lack of solicited comments for public input raises questions about the transparency and fairness of the rule-making process. I urge you to concentrate on other improvements that could benefit the market instead of making it more dangerous with less collateral on the fly: including strengthening and enforcing margin requirements, introducing external auditing and supervision, incorporating public input, and enhancing transparency requirements. Swap “3. OCC’s own pre-funded financial resources” and “4. Clearing fund deposits of non-defaulting firms” for the OCC’s Loss Allocation waterfall so that Clearing fund deposits of non-defaulting firms are allocated losses before OCC’s own pre-funded financial resources and the EDCP Unvested Balance. These measures are essential to fostering trust among market participants and maintaining the stability and integrity of our financial markets. I strongly oppose the adoption of proposed rule SR-OCC-2024-001 in its current form and encourage a thorough reconsideration of its implications. Thank you for your attention to this matter and thank you for the opportunity to comment as all investors benefit from a fair, transparent, and resilient market. Sincerely, Bartosz Michalowski