NSCC Filing Today. THIS. IS. ACTUALLY. INSANE.
==============================================

| Author       | Source       | 
| :-------------: |:-------------:|
|  [u/Sar7814](https://www.reddit.com/user/Sar7814/) | [Reddit](https://www.reddit.com/r/GME/comments/mg4o2q/nscc_filing_today_this_is_actually_insane/) | 

---

[News](https://www.reddit.com/r/GME/search?q=flair_name%3A%22News%22&restrict_sr=1)

NSCC-2021-004 ----> Filed [THIS](https://www.sec.gov/rules/sro/nscc/2021/34-91428.pdf), TODAY.

APES PLEASE, I know these legal documents look like some squiggly letters and number headings that no one wants to fuck with, but apes, APES, this is actually, to date, the single most convincing piece of evidence I have seen, the most comprehensive, the most powerful, the craziest fucking shit so far (IMO)

[u/Shooting4daMoon](https://www.reddit.com/u/Shooting4daMoon/) posted the link to the actual govt filing earlier, and I read it. I read this 30 fucking 4 page government document PDF. Why? You all know why. We all crave a wrinkle or two in this ape brain now and then. Also my life is GME. Moving on.

All you need, is to read these quotes from the filing. That's it. That's all you need to know how I am feeling rn:

"The R&W Plan sets forth the plan to be used by the Board and NSCC management in the event NSCC encounters scenarios that could potentially prevent it from being able to provide its critical services as a going concern. The R&W Plan is structured as a roadmap that defines the strategy and identifies the tools available to NSCC to either (i) recover, in the event it experiences losses that exceed its prefunded resources (such strategies and tools referred to herein as the "Recovery Plan") or (ii) wind-down its business in a manner designed to permit the continuation of NSCC's critical services in the event that such recovery efforts are not successful (such strategies and tools referred to herein as the "Wind-down Plan"). The recovery tools available to NSCC are intended to address the risks of (a) uncovered losses or liquidity shortfalls resulting from the default of one or more of its Members, and (b) losses arising from non-default events, such as damage to NSCC's physical assets, a cyber-attack, or custody and investment losses, and the strategy for implementation of such tools...

The proposed rule change is designed to update and enhance the clarity of the Plan to ensure it is current in the event it is ever necessary to be implemented. "

"Section 5.3 (Liquidity Shortfalls) of the Plan identifies tools that may be used to address foreseeable shortfalls of NSCC's liquidity resources following a Member default. The goal in managing NSCC's qualified liquidity resources is to maximize resource availability *in an evolving stress situation*, to maintain flexibility in the order and use of sources of liquidity, and to repay any third-party lenders of liquidity in a timely manner...

First, the proposed rule change would revise the entries for "3. Obligation Warehouse" and "10. CNS/Prime Broker Interface" to delete the check mark denoting the lack of alternative providers and products as one of the determinants for its classification as a critical service." *(DAYUM DAT WAS A BURN DOE)*

"Also, the proposed rule change would update Table 3-B (NSCC Critical Services) to add "Account Information Transmission" ("AIT"). This new entry would include in the description of AIT18 that it is being enhanced in support of the bulk transfer initiative, which is an industry effort designed to prepare carrying broker-dealers for an emergency mass transfer of large quantities of customer accounts and assets from a distressed broker to a financially secure broker.

2\. Member Default Losses through the Crisis Continuum Section 5 (Member Default Losses through the Crisis Continuum) of the Plan is comprised of multiple subsections that identify the risk management surveillance, tools, and governance that NSCC may employ across an increasing stress environment, referred to as the "Crisis Continuum." This section currently identifies, among other things, the tools that can be employed by NSCC to mitigate losses, and mitigate or minimize liquidity needs, as the market environment becomes increasingly stressed. As more fully described below, the proposed rule change would clarify certain language. Section 5.2.1 (Stable Market Phase) describes NSCC's risk management activities in the normal course of business. These activities include (i) the routine monitoring of margin adequacy through daily evaluation of backtesting and stress testing results that review the adequacy of NSCC's margin calculations, and escalation of those results to internal and Board committees and (ii) routine monitoring of liquidity adequacy through review of daily liquidity studies that measure sufficiency of available liquidity resources to meet cash settlement obligations of the Member that would generate the largest aggregate payment obligation."

GUYS, THIS IS ONLY UP TO PAGE 13. I COULD GO ON BUT HERE I WILL LINK THE PDF WITH JOY:

<https://www.sec.gov/rules/sro/nscc/2021/34-91428.pdf>

APE TL;DR The NSCC (National Securities Clearing Corporation) (a subsidiary of DTCC), has filed this document TODAY. The NSCC and DTCC are Clearing corporations, so basically, they are the ones who are stuck with the bag of dogshit when the HFs come to them and say "ummmmm we fuked". So they filed this document today. Many parts to this document, but one part for example was, to clarify "the plan" of what would happen if shit hits the fan basically.

In their words:

1.  The plan "is intended to address the risks of (a) uncovered losses or liquidity shortfalls resulting from the default of one or more of its Members,"

2.  The Plan "identifies tools that may be used to address foreseeable shortfalls of NSCC's liquidity resources following a Member default"

3.  The plans goal "is to maximize resource availability *in an evolving stress situation*, to maintain flexibility in the order and use of sources of liquidity, and to repay any third-party lenders of liquidity in a timely manner..."

4.  The plan supports "an industry effort designed to prepare carrying broker-dealers for an emergency mass transfer of large quantities of customer accounts and assets from a distressed broker to a financially secure broker.

5.  Next section is on "the tools that can be employed by NSCC to mitigate losses, and mitigate or minimize liquidity needs, as the market environment becomes increasingly stressed. "

I could go on but then it wouldn't be a TLDR, but I will just say there is NO way I can cover this entire doc in a TLDR, if you want the full perspective its worth the read tomorrow maybe when you guys are less high and have more caffeine pumping through your blood.

Edit: Does this legal document specifically mention GME? No. Do I know if this document is in reference to GME? No. Should we check ourselves, and say hm this COULD be totally unrelated? Yes. We should consider that possibility. But we should also take ALL of our data into account, all of the context. I am only posting information, so I encourage everyone to interpret this how they please.
