February 12, 2022
This rule is just another way to legalize the ongoing crime in the markets by abusing FTDs.
FTDs made sense when stocks had to be manually transported upon sale. In the digital age, FTDs are simply a legalized form of stealing from people.
FTDs are a form of fraud in their current design and the processing system called Continuous Net Settlement is the legalized way to hide the fraud.
THE FOLLOWING IS A SIMPLE METAPHOR FOR HOW FTDS WORK:
I buy a new house on the open market for 500,000. I expect to move into a new house when I purchase it.
However, when I go to move into my house, the bank says tells me I have to wait 2 years before I can move into my house but during those 2 years they will rent my house from me.
I DO NOT GET A CHOICE TO SAY NO.
After 2 years, the bank still has my initial 500,000 that the house was worth when I bought it. But the bank pays me 100,000 'inconvenience fee' for the delay moving.
So after 2 years of waiting I finally get my 'new' house AND 100,000. Sounds like a good deal.
When I show up my house that I bought has been destroyed and is now worth 100,000.
So I paid 500,000 for a new house and instead I got 100,000 old house + 100,000.
My 500,000 has lost 60% of it's value and the bank is telling me I should be happy I got the 100,000 in rental fees.
New house = Shares
That is how FTDs work.