May 11, 2024
To whom it may concern: I am a household investor writing you today to encourage the REJECTION of SR-OCC-2024-1. Changing the margin requirements rule (lowering the minimums) during periods of high volatility is a terrible idea. The requirements in place now are there to protect the market and prevent a contagion of failures. Further, the current margin requirements act as a deterrent to institutions making dangerous and risky decisions. Lowering the requirements will encourage more risky behavior - the very behavior that often CREATES periods of high volatility in the first place. If the SEC does not have firm, consistent rules in place, or is willing to bend the rules whenever risky participants are in danger of facing the consequences of their poor decisions, then why should the SEC even exist in the first place? Your job is not always a popular one, much like a parent who must discipline an unruly child. You must be the one that is acting for the good of all. Your children must know there are boundaries in place, and they must be respected. If that means high risk-taking market participants fail a margin call and are liquidated, those liquidations will make the rest of the market stronger and they will be mindful to conduct business in a more prudent manner. Margin requirements should be high and held firm - especially in times of high volatility - because it is these very times that the margin is needed in the first place. The SEC should not accommodate and encourage bad behavior by being a weak enforcer. Lowering margin requirements will indeed encourage more of the very behavior the agency should be discouraging. Please REJECT SR-OCC-2024-1 Thank You, D. Kraft -- OIIIIIIIO