Mar. 2, 2024
Dear Sir/Madam,
Re. SR-OCC-2024-001 rule I strongly disagree with modifying margin
requirements on the fly, based on volatile market conditions and
idiosyncratic
risk as there is no transparency into its mechanism of allowing them, it
creates conflicts of interest, it will encourage bad behaviors and
unnecessary risk taking
and also in the end save these excessive risk taker participants from
being margin called which is a good risk reducing instrument in itself.
Our markets should have simple rules and excessive leverage and risk
taking strongly discouraged as it puts in peril our entire economy,
creating actually unnecessary risk in the system and also causing some
of these excessive risk taking players to be rewarded and eventually
bailed out at higher levels, again rewarding their risky behavior in the
markets, whereas most of the working people are affected by losing jobs,
not keeping pace with inflation or otherwise losing their investments or
houses.
I am definitely towards more market transparency and discouraging
exaggerated risks and leverage that at the end of the day creates
"opportunities" for a few players to get high leverage using high risk
whereas most of the other players lose in the game.
Thank you,
Calin Guga