May 9, 2024
Dear Securities and Exchange Commission, As a german investor into the US stock market i wish to give my opinion on the rule change in question. The whole world was watching in shock when the USA were hit with a financial crisis in 2008 that rippled around the globe. As it turned out, this was a consequence of multiple Wall Street firms getting high on making riskier and more convoluted bets in the derivatives market. These days it feels like it's only a matter of time until something similar repeats, with estimates of the capitalization of derivatives ranging from $550 trillion to $1 quadrillion and banks feeling confident about being bailed out if something goes wrong. That being said, lower margin requirements for holding options would incentivize riskier behavior, which in turn could lead to more instability. The derivatives market needs more regulation, not less! Actors who miscalculate their leverage still need to be held responsible somehow. So i urge you to disapprove rule change proposed by the OCC. Kind Regards, Sven Brandt