Comment Text:
I commend the CFTC for seeking public comment on this matter. As a retail investor, I can say I have serious concerns about perpetual derivatives. Considering the lack of transparency in our markets from dark pools and family offices, the rise of high frequency trading, payment for order flow, and events like Archegos; the adoption of yet another derivative with limited transparency has serious potential for abuse.
Being an investor, it is clear stock prices are manipulated through the use of dated options to move the price or cover short sales. Perpetual options will only facilitate another tool for large nefarious market participants to exploit. I am concerned about this because our markets should be fair, but they aren't. While the pricing for perpetual options is different that standard dated options, and arguably carry a higher premium, the perpetual nature will allow SOME privileged market participants to cap risk for risky or highly leveraged bets.
I encourage the CFTC to not adopt perpetual options.
