DTC-2021-008 Passed, DTC-2021-009 NEW rule proposed! A closer look at 009.
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| Author       | Source       | 
| :-------------: |:-------------:|
|  [u/creakfast](https://www.reddit.com/user/creakfast/) | [Reddit](https://www.reddit.com/r/DDintoGME/comments/nvwnan/dtc2021008_passed_dtc2021009_new_rule_proposed_a/) | 

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[𝘜𝘯𝘷𝘦𝘳𝘪𝘧𝘪𝘦𝘥 𝘋𝘋](https://www.reddit.com/r/DDintoGME/search?q=flair_name%3A%22%F0%9D%98%9C%F0%9D%98%AF%F0%9D%98%B7%F0%9D%98%A6%F0%9D%98%B3%F0%9D%98%AA%F0%9D%98%A7%F0%9D%98%AA%F0%9D%98%A6%F0%9D%98%A5%20%F0%9D%98%8B%F0%9D%98%8B%22&restrict_sr=1)

Yesterday, 008 was passed, and another one has been proposed by the DTC, the 009.

(a) Purpose

The proposed rule change would amend the Service Guides and the OA to provide enhanced clarity around (i) deadlines, timeframes, and cutoffs established by DTC in connection with DTC services ("DTC-established Stakeholder Deadlines"), and (ii) the times and timeframes for DTC actions and processes relating to DTC services ("DTC Processing Times"). In particular, the proposed rule change would enhance the transparency around the ability of DTC to extend DTC-established Stakeholder Deadlines, and around DTC Processing Times, which are standards, rather than deadlines, as further described below.

The Service Guides and the OA (Operational Arrangements) are the standard operating procedures you gotta follow if you're a Participant (i.e. bank, HF, institution, etc.) within the DTCC.

So far, it just sounds like the DTC wants more clarity around anything time related when it comes to their services.

DTC believes that Participants and other stakeholders benefit from clear information about their rights and obligations relating to DTC-established Stakeholder Deadlines and DTC Processing Times so that they are able to plan and conduct their business and securities transactions more effectively.

Their reason for the rule change. ^

(iv) Proposed Rule Change

To effectuate the proposed changes described above, DTC would add the following paragraph near the beginning of each of the Service Guides and the OA:

Note: DTC, as it deems appropriate, may extend any deadline, timeframe, or cutoff established by DTC, including, without limitation, to (i) address operational or other delays that could reasonably affect the ability of DTC, a Participant or other stakeholder from meeting the deadline, timeframe, or cutoff; or (ii) allow DTC time operationally to exercise its existing rights under the Rules and Procedures. In addition, times applicable to DTC are standards and not deadlines; actual processing times may vary, based upon the circumstances. Any action taken by DTC in connection with this paragraph shall not establish a precedent for any situation that may occur in the future (or otherwise bind DTC in any manner). DTC disclaims all liability for any losses and/or expenses incurred by a Participant, stakeholder or any third-party resulting from, relating to, or arising from (i) any action taken by DTC in connection with this paragraph, (ii) the determination of DTC to decline to take action pursuant to this paragraph, and/or (iii) the failure of a Participant, stakeholder or any third-party to meet any deadline, timeframe, cutoff or requirement established by a party other than DTC.

Now this is the good part. The DTC can now extend deadlines, timeframes, and cutoffs than stated from their OA or Service Guides to address delays, and allow more time for DTC to exercise their rights.

And then: DTC disclaims all liability for any losses and/or expenses incurred by a Participant, stakeholder or any third-party resulting from, relating to, or arising from (i) any action taken by DTC in connection with this paragraph, (ii) the determination of DTC to decline to take action pursuant to this paragraph, and/or (iii) the failure of a Participant, stakeholder or any third-party to meet any deadline, timeframe, cutoff or requirement established by a party other than DTC.

To me this sounds like the DTCC knows the rocket is imminent and Marge is about to call a speed dial. They do not want to left holding the bag so they are basically saying "hedgies r fook."

The Service Guides provide Participants with procedures and information pertaining to DTC settlement and asset services. The procedures and information include, among other things, descriptions of DTC-established Stakeholder Deadlines for Participant and stakeholder6 action relating to DTC services. The OA is designed to provide Participants and other stakeholders with information and procedures related to DTC eligibility for securities, and to provide the requirements for, among other things, the orderly processing of securities, corporate actions, and distributions. The OA includes descriptions of DTC-established Stakeholder Deadlines in connection with the requirements and services.

Okay, so they're providing a little more detail on Service Guides and OA. But then there is a footnote at the end of this paragraph and this is what it says:

" For example, the OA requires that, in order for DTC to make a same day allocation of funds, the agent must provide DTC with CUSIP-specific details for the payment before 2:50 p.m. on payable date, and that the details must match the amount of funds that are received by DTC no later than 3:00 p.m. See OA, supra note 5, at 27 "

I need apes with a few more wrinkles to help me interpret that.

In addition, although the Important Legal Information page of the Service Guides and the OA already contain general disclaimers of liability, DTC is proposing to expressly state that DTC disclaims all liability for any losses and/or expenses incurred by a Participant, stakeholder, or any third-party resulting from, relating to, or arising from (i) any action taken by DTC with respect to an extension of a DTC-established Stakeholder Timeframe, (ii) the determination of DTC to decline to take action with respect to a DTC established Stakeholder Timeframe, and/or (iii) the failure of a Participant, stakeholder or other third-party to meet any deadline, timeframe, cutoff or requirement established by a party other than DTC. DTC believes that this express disclaimer would enhance the understanding of Participants and other stakeholders of their responsibilities in connection with DTC-established Stakeholder Deadlines and possible extensions, which would help them to more effectively assess the risks relating to an inability to meet a DTC-established Stakeholder Deadline and conduct their business accordingly.

Again, the DTC is reiterating that they are not liable for members' losses. THIS PARAGRAPH IS REPEATED OVER 10 TIMES IN THE RULE FILING.

TL;DR: I think DTC knows the member defaults are coming very soon, and they want everyone to know the bags will not held by them.
