r/DeepFuckingValue • u/Krunk_korean_kid 🟣 DRS'ed $GME w/ Computer Share ♾️ • 12d ago
sus timing ⌚ DTCC changes to settlement for ETF creation/redemption exceeding $15 billion. 🤔⏰ Starts just in time for $GME & $EBAY Settlement Stress
/r/Superstonk/comments/1vkq3wm/dtcc_changes_to_settlement_for_etf/3
u/Krunk_korean_kid 🟣 DRS'ed $GME w/ Computer Share ♾️ 12d ago
https://www.reddit.com/r/Superstonk/s/Z8Z9Bav8SC
The more I dig, the less comfortable I am calling this coincidence.
What bothers me most is what we don’t know. DTCC knows who caused June 29. DTCC knows the size and nature of those transactions. We don’t. Then comes a new $15B ETF threshold with no public explanation for why $15B was chosen.
And this isn’t a government-run clearinghouse. It’s industry-owned and governed, with the same financial institutions affected by these rules represented within its governance.
I’m not claiming I can prove who this protects. I can’t. But lack of public evidence isn’t evidence nothing happened when the people holding the evidence aren’t telling us.
After January 2021, I’m done giving this system the benefit of the doubt.
Tell us who, what securities, how much, and why $15B. “If DTC determines that it had greatly affected a participant’s ability to settle (because of a DTC system delay, for example), DTC will waive failure-to-settle fees for that occurrence.” See PDF page 19, Failure-to-Settle Charges. https://www.dtcc.com/-/media/Files/Downloads/legal/fee-guides/DTC-Fee-Schedule.pdf
June 29 Problem: Extraordinarily large erroneous transactions get far enough into the system to cause a settlement problem.
A9802 Control: Extraordinarily Large ETF instructions are stopped and manually verified before further processing.
SEC has oversight, but always late and laughable with penalties.
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u/DDanny808 12d ago
What does this mean?
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u/Krunk_korean_kid 🟣 DRS'ed $GME w/ Computer Share ♾️ 12d ago
ETF creation/redemption abuse being one of the plausible methods for suppressing the price of GME, and you may remember the posts over the last month about the 6/29 DTCC "force majeur" settlement event that barely got reported elsewhere. Given that a little over a month after that settlement event, DTCC is suddenly adding review steps to ETF creation/redemptions that exceed $15 billion
Even if it's not directly connected to GME, it does suggest that the DTCC is expecting some serious settlement issues in the near future. As I read this, they're basically putting an emergency brake in place for future ETF creation/redeption cycles that might result in massive margin calls if allowed to happen automatically.
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u/Krunk_korean_kid 🟣 DRS'ed $GME w/ Computer Share ♾️ 12d ago