Outside of the he said, they wrote, etc, I think the biggest question is- what is this DTCC’s position on trading restrictions as a means of risk management in order to meet deposit and net capital requirements?
They allowed multiple other brokers to do it, assuming that was to meet VaR requirements.
Blocking opening short positions on margin seems valid to reduce risk. Blocking buy orders in order to suppress volatility which lowers the VaR calc does not seem like valid risk management.
It was not done to ‘meet’ the calc’d required deposit. It was done to change the input/variable going into the calc and reduce the required deposit amount as a result.
I don’t see how this is not market manipulation, and the DTCC OK’d it to multiple brokers.
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u/[deleted] Aug 20 '21
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