Jan. 30, 2024
I am writing in regards to the OCC's proposed rule change to lower margin requirements during periods of market volatility. Is it wise to allow this self regulating organization to decrease margin requirements at a time when institutional exposure to derivatives is at historic highs? I understand that lowering margin requirements could help prevent cascading failures, or anti-free market actions such as restricting buy orders from household investors. However lowing margin requirements seems guaranteed to incentivize even greater risk taking. Rather than loosening those requirements to protect over leveraged institutions, I believe that the long term stability of the market would be better served by requiring those institutions to better manage their risk. Thank you, Matthew Culbertson Alma, CO