Apr. 21, 2022
SR-NSCC-2022-801 This rule is a clear attempt to launder illegal naked shorts and FTDs. The DTCC and the NSCC both know there are billions upon billions (possibly trillions) of dollars’ worth of Naked Shorts, FTDs and the like that need cleared. This rule is written to circumvent that requirement. Brokers, hedge funds and the like have acquired debts they do not (or cannot) want to pay. A perfect example is Citadel owing (per their 2021 statement) over $65 billion in “securities sold, not yet purchased, at fair value”.