Apr. 20, 2022
This shit has me so fucking pissed. This is essentially the "overnight reverse repo" program, but for FTDs. They can just borrow the fucking shares they need anytime they want, whether they're available to borrow or not, and they can base the collateral requirements off of the INITIAL PRICE OF THE STOCK THEY NEEDED TO BORROW before the MOASS starts and "close out their positions" so someone else has to hold the bag. It's another bullshit means of kicking the can, once every 24hrs. And they can avoid ever paying top-dollar during the worst of the MOASS. Brokers would be given the freedom to "lend" SFTs created by the NSCC whenever, and charge whatever they want. If they want to charge each other zero dollars to lend those imaginary shares, they can. They're taking the "infinite share copy machine" that the market makers have "for the sake of liquidity" and giving it to EVERYONE. (comment taken from reddit) On Wednesday, April 20, 2022, 07:22:19 PM GMT+3, Duca Cosmin wrote: SR-NSCC-2022-801 it’s a rule to launder illegal naked shorts & persistent FTDs! The NSCC explicitly “understands” that there are significant FTDs, Naked Shorts and similar that need to be cleared. This rule proposes a service to “avoid” those pesky obligations. It does so by introducing a new transaction layer that “novates” (replaces) old obligations b/w NSCC member lender / short sellers / prime brokers / etc. with a new obligation b/w a member and the NSCC itself as the new counterparty. This novation is done with even more lending of securities. This proposal is not in the interest of RETAIL. This does NOT lead to Transparency or hold those who have put this country at risk accountable.