The DTCC (Depository That Clears Counterfeits) is finished. They covered up the fraud that enables naked short selling and are why we will MOASS to epic proportions.
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| Author       | Source       | 
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|  [u/JustBeingPunny](https://www.reddit.com/user/JustBeingPunny/) | [Reddit](https://www.reddit.com/r/Superstonk/comments/ocds1m/the_dtcc_depository_that_clears_counterfeits_is/) | 

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[DD 👨‍🔬](https://www.reddit.com/r/Superstonk/search?q=flair_name%3A%22DD%20%F0%9F%91%A8%E2%80%8D%F0%9F%94%AC%22&restrict_sr=1)

TL;DR - The naked shorting scandal is much worse than you may have first believed. The 'real' shares in your account hold the exact same rights as any other, but behind the curtain, the DTCC has historically covered up the FTDs and mass naked shorting using CEBE (Counterfeit Electronic Book Entries). This is the DTCC's way of maintaining this reverse Ponzi scheme. This is why an NFT dividend would ruin them, as they can't 'cook the books' for everyone to get one. The DTCC is fuk.

Edit - If the DTCC wasn't royally fucked...why would they be passing so many rules to push the blame on to the participants? Tits = Jacqued

House of Cards was an extraordinary insight to the inner workings of the DTCC. If you haven't read it by now, you should before you read this post, as it assumes a fundamental knowledge of them. I have also obtained much data here from the naked short selling expert Jim DeCosta. If you haven't read his letters to the SEC, I urge you too. They're long but they were dumbed down so even the SEC could understand them.

I ain't no financial advisor.

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A brief history -

*For ease of typing I will be using NSS to refer to Naked Short Selling.*

[![r/Superstonk - The DTCC (Depository That Clears Counterfeits) is finished. They covered up the fraud that enables naked short selling and are why we will MOASS to epic proportions.](https://preview.redd.it/97pzaly4tt871.png?width=254&format=png&auto=webp&s=c655a0725b3d4a01b5a28cbaed1df4e3b02a36e3)](https://preview.redd.it/97pzaly4tt871.png?width=254&format=png&auto=webp&s=c655a0725b3d4a01b5a28cbaed1df4e3b02a36e3)

NSS has been as systemic issue YEARS before the financial crash of 2008. There were warnings of this to the SEC back in 2006 and of course, they did nothing. The small changes they did implement were miniscule in effect, which continued to enable predatory short sellers to cause financial 'death spirals' to bankruptcy.

Do you know how institutions defended NSS as a necessary evil in the markets? Pump and dumps.

NSS was meant to 'curb the fraud' and 'protect investors'. It was argued that pump and dumps would run riot without the ability to sell shares they couldn't borrow. Collectively, these 'shareholder advocates' are generously offering their services in the fight back against pump and dumps.

They're offering to step up and volunteer to become a pseudo-sheriff and sell non-existent stocks into the hands of 'about to become victims'. They don't own the shares, nor did they check the 'borrowability' of them. They're generously volunteering to take the investors money in exchange for a CEBE, artificially raising the supply. This of course, immediately does damage to the investment, the company and existing shareholders.

After the naked short has been done, what now? Well the 'would be victim' and the 'shareholder advocate' now fundamentally have goals that are polar opposite. The buyer wants the stock to go to the moon. The naked short seller wants the business to bankrupt. It begs the question; why would an entity volunteering to protect against fraud, still take the money of the investor?

*Wouldn't you agree that pump and dumps and NSS go hand in hand? Pump up a stock and then bear raid it into the ground? It was a way to maximize profit on the DOWN in the dump phase.*

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1+1 = 3

The maximum amount of shares that can LEGALLY be sold short is governed by the number shares that can LEGALLY be borrowed. NSS ignores this fundamental basic mechanism. In fact, the DTCC enables this further due to the fact a single share can be lent out in multiple directions. This is the reason for FTDs in the hundreds of percent.

So how does this play into GameStop? How do you know your share is a real share and not a CEBE?

Answer : YOU DON'T, AND IT DOESN'T FUCKING MATTER. ONE. BIT.

To the general public, your share is as good as my share. It holds the same rights as any other. If I hold 100 shares of the same 1 share, it doesn't matter one bit. I have the legal rights to 100 shares.

You know who it does matter to? The DTCC and its' participants. They have an accounting nightmare on their hands.

Imagine the DTCC selling the same lambo 100 times? Those 100 buyers believe they own a lambo, can sell the title to the lambo, heck they can even use the car as collateral! Well, what happens when Lamborghini decide to issue every single owner with a special keychain?

The DTCC can't replicate this keychain and you as an owner are still legally entitled to receive it.

[![r/Superstonk - The DTCC (Depository That Clears Counterfeits) is finished. They covered up the fraud that enables naked short selling and are why we will MOASS to epic proportions.](https://preview.redd.it/x6835ephtt871.png?width=679&format=png&auto=webp&s=8c81d33ae1ab915c044ac27395a8ff5d79d769ce)](https://preview.redd.it/x6835ephtt871.png?width=679&format=png&auto=webp&s=8c81d33ae1ab915c044ac27395a8ff5d79d769ce)

This is the same situation as GameStop. You thought you were buying shares from a 'real shareholder'. You see a number of shares in your brokerage account. Why would you even think for one second that the shares aren't even there? You see no reason to ask for the validity of the delivery of certificated shares. It's also why brokers strongly advocate against clients demanding paper certificates of their shares. One firm in 1999 urged fellow DTCC participants to hike up fees for share certificates to hinder investors demanding proof of purchase.

So you bought some shares. You see the number. Where are they? Well, they're 'conveniently' held in an anonymous 'pool' of all of the other shares. It's like taking a bunch of green skittles (real shares) and red skittles (naked shares) and throwing them into a bag, mixing em' up and asking a colorblind person to pick one out?

To them? It's any old skittle.

Now what if all the red skittles all needed to be taken back?

What if the bag was FULL of red skittles.

*The only person who knew what color went where was the person holding the bag (The DTCC). (wow irony)*

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The CEBEs at the DTCC do not represent what you think of as 'shares'. Shares are a 'package of rights' attached to a public company. I hate to break it but this doesn't include the other millions of shares (beyond the public float) that are counterfeit in the system. Real shares also hold the right to any dividends distributed.

So say a company issued dividends that were shares to all shareholders? You hold one share? You get another one! The float is 100 million shares. The transfer agent would send a 'real' certificate made out to Cede and Co. for another 100 million shares to give to each and every share holder. What happens when an extra 400 million show up as being 'delivered' to shareholders?

Because the DTCC are complicit in ensuring that this fraud is covered up every time a shareholder tries to exercise of the rights attached to only 'real' shares. These CEBEs at the DTCC are NOT real shares and do not have the rights attached with them. HOWEVER, THEY HAVE TO MAINTAIN THE ILLUSION THAT THEY HAVE THESE RIGHTS TO NOT EXPOSE THIS FRAUD.

Why would they do this? THEY HAD TO. Otherwise, they would have to inform the owners of these other 300 million shares that what they had was:

- non-existent

- not actually real

- no rights to the dividend

- their money in the pockets of the seller

What happens if you want to sell your share. The DTCC won't turn around and say, '*you can't sell that because we never got good delivery of your purchase*'. The broker would have normally just sold your counterfeit shares to the next naïve investor. Have you ever heard of an investor who got a proxy solicitation statement that indicated that he or she can't vote his or her shares because they are counterfeit and there never were any voting rights attached? The DTCC has to maintain this illusion otherwise the reverse ponzi scheme will be revealed.

So what happens if an NFT is issued as a dividend? The DTCC can't 'cook the books' and are forced to reconcile the float back down to its' issued amount.

Shorts HAVE to close their positions. They need everyone to sell to cancel out their 'fake borrow'. What if no one sells? YOU GET THE FUCKING MOASS.

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So what did you actually buy?'

You bought the right to sell a Counterfeit Electronic Book Entry.

You bought a put option with no expiry date.

You were conned.

Does it matter? Not a fucking bit. You are entitled to the rights just as much as anyone else and the DTCC are going to have a really hard time getting you a dividend that isn't cash or stock.

And if they can't, they have to buy back your share at a price YOU STATE AND THERE IS NOTHING THEY CAN DO ABOUT IT.

[![r/Superstonk - The DTCC (Depository That Clears Counterfeits) is finished. They covered up the fraud that enables naked short selling and are why we will MOASS to epic proportions.](https://preview.redd.it/4ykybhextt871.png?width=941&format=png&auto=webp&s=790e1fb7bda1744e9c09d76896b34876d83bb888)](https://preview.redd.it/4ykybhextt871.png?width=941&format=png&auto=webp&s=790e1fb7bda1744e9c09d76896b34876d83bb888)

The irony? For them to cover, you're going to have to sell something that doesn't exist. That is...if you ever sell...

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*Part two?- How T+0 is the best case for the DTCC, naked short selling and outright fraud*
