Comment Text:
Dear Market Risk Advisory Committee,
This comment is in response to the meeting discussion regarding diversity, equity, and inclusion in the derivatives industry as well as other related financial markets.
First, I wanted to feedback Central CounterParty risk as a legitimate risk affecting America's financial markets today. This isn't the good old days in America where every financial market pit boss is a member of the Skulls and Bones society or former All-American athlete or Heisman trophy winner. There are more important things our most hardworking and capable individuals are doing, fighting and protecting American democracy and the freedoms which we stand for. I would like you all to take some time to consider the sheer size of CCP risk. People probably didn't think much when a few hundred thousand Reddit users followed #WallStreetBets or used the Robinhood app who might also be involved with cryptocurrency markets. But numbers do still matter. Rather than see these recent "irrational" investors in a negative light, would you all briefly consider these investors as a preview of things to come? Technology is continuing to develop at a rapid pace with our without America's top institutions, people are getting interconnected with or without America's corporations, patents are being claimed and filed with or without our patent office. What we had witnessed was a mix of ordinary internet users looking for money who found a obscure niche to be able to temporarily take advantage of America's financial markets. We should treat it as a fair loss rather than mistake, because things could be far worse. For example, India is the world's biggest democracy with 1.3 billion people. Tens of millions of Indians travel and work around the world for money under disadvantageous conditions with neither their home government or host country care much for their safety or rights. How many of you can read Hindi or dozen of other widely used languages in India to keep up to date or monitor their social media communications for insider secrets in the countries they work? Or the Chinese Communist Party boasting over 90 million members in many levels of Chinese society, plus another 200 million of their working teams and cohorts (or a mother and father for every Communist member)? These nationals have the sheer numbers to participate across many different markets, as well as the competence and results to convince markets to let them stay.
Second, I want to add to everyone's consideration of diplomatic risk in derivatives industry and related markets. If we have learned anything about four years of "America First", it is America first... at our friends and allies' expense. Okay, so we push our derivatives markets and we ensure every entrepreneur and small and medium enterprise is hedged, and every employee working for an American company gets to guarantee that a paycheck will be brought home and Christmas will be splendorous. Meanwhile, derivative contracts are being pushed like hot potatoes around the world from contract to contract and pocket to pocket. Something sounds off here. People will talk. People will eventually get it. The US is still in bad relations with the EU for pushing subprime promissories into their markets, and God knows who else ended up at the receiving end when debtors are not able to pay back their full amounts. Which, by the way, the EU still has not fully recovered to pre-discovery 2008 levels. Would you kindly consider how our financial markets make the lives of other Americans harder? When Osama Bin Laden took credit for the destruction of the World Trade Center, most of us actually believed him. When we push our financial instruments outside the US, it clearly has serious diplomatic repercussions. What can we do to reduce the likelihood of another violent attack in retaliation of selling our promises on paper, or worse a third world war?
Thank you for your consideration.
