Sep. 14, 2023
SR-FINRA-2023-011 proposal to extend the deadline for margin requirements (FINRA Rule 4210) is another step towards perpetually never implementing a rule that will encourage true price discovery on securities. These lack of margin requirements has lead to substantial harm to individual investors as it prevents and obscures price discovery. It also allows investment firms to use unsustainable amounts of leverage to the point where they may wind up posing a systematic risk to the market. 7 years is more than enough notice for all affected parties to have their ducks in a row and figured out for their short positions. Do not kick the can down the road where it will only become worse.