May 12, 2024
As a concerned retail investor, I am writing to express my strong support for the Securities and Exchange Commission's (SEC) decision to reject the proposed rule change by the Options Clearing Corporation (OCC). I believe the SEC's action prioritizes transparency, risk mitigation, and investor protection, all crucial aspects of a healthy and fair financial market. My concerns with the OCC's proposal center on three key areas: 1. Lack of Transparency: The details surrounding the proposed adjustments to margin requirements were insufficient. This lack of transparency hinders public understanding and market stability. 2. Potential Systemic Risks: Adjusting margin requirements during periods of volatility could exacerbate market downturns, posing systemic risks to the entire financial system. A thorough analysis of these potential risks is necessary. 3. The proposed expansion of the FRM Officer's role raised concerns about potential conflicts of interest. Maintaining clear lines of responsibility fosters investor confidence. I commend the SEC for its commitment to a transparent and stable financial system. I believe further dialogue involving all stakeholders is necessary before considering such significant rule changes. Thank you for your time and consideration. Sincerely, A Concerned Retail Investor