Organizing DTCC/NSCC/OTCC Rules
===============================

| Author       | Source       | 
| :-------------: |:-------------:|
|  [u/humanisthank](https://www.reddit.com/user/humanisthank/) | [Reddit](https://www.reddit.com/r/Superstonk/comments/msi94e/organizing_dtccnsccotcc_rules/) | 

---

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

First, credit to [u/beebsgaming](https://www.reddit.com/u/beebsgaming/) for compiling much of this list. I was losing track with the various agencies and rules going around so wanted a comprehensive list of everything and where we stand. I've been lurking since January and am only starting to invest this year. Please by all means fact check.

DTCC-2021-002- Enhances the methodology for setting investment limits and caps on bank counterparties (IE. investors, including HFs, that are borrowing shares, funds). Limits amount of lending allowed based on credit rating and equity capital. APE SPEAK: Reduces the amount any party can borrow. Limits HFs ability to become overleveraged in their short positions. Effective Date: was submitted to federal register on March 10, 2021. Will become effective 45 days after submission to register if no comments or changes are made, and up to 90 days if revisions are required. Latest possible effective date- June 8, 2021. APPROVED: Per this post - <https://www.reddit.com/r/Superstonk/comments/msbs3r/dtcc_002_and_003_approved_by_sec> and this post - <https://www.reddit.com/r/Superstonk/comments/msczfv/srdtc2021002_has_been_officially_approved_by_the>

DTCC-2021-003- Increases frequency of position reporting to the DTCC. Adds fines for inaccurate or delayed reporting. APE SPEAK: DTCC can open the books of any market member at any time to examine just how deep into the sh*t they are. Effective Date: Became effective March 16, 2021 (they know just how f*cked the situation is right now)

DTCC-2021-004- Increases oversight and liquidation capabilities of the DTCC to protect all of it's members. Sets margin call limts for any member in a heavily over-leveraged position. Essentially, it is an insulator to an uncontrolled squeeze by allowing the DTCC to liquidate assets of an overleveraged member to minimize the over-leveraged positions' impact on the rest of the DTCC's members. It also states that it will not "bail-out" a member who is in an over-leveraged position, which is HUGE. APE SPEAK: If hedgie shorts the f*ck out of a stock and finds itself trapped as share price rises, the DTCC can liquidate them to cover their positions and prevent it's other members from taking losses. In addition, hedgie that is f*cked is on their own. No safety nets. Effective Date: Became Effective March 29. 2021 (They can limit damage right now, but have not had to, see [u/c-digs](https://www.reddit.com/u/c-digs/) "why are we trading sideways?" DD)

DTCC-2021-005- This is the biggie. This ruling prevents using synthetic shares created by deep ITM calls and married puts from being used to cover REAL short positions. It links any of these synthetic shares to the call or put that created them. APE SPEAK: No more synthetic shares to cover FTD obligations. Effective Date: <https://www.reddit.com/r/Superstonk/comments/mqs797/re_good_news_update_on_dtc2021005_expect_to_be/> <- Per this post, DTCC-2021-005 should be re-filed in 1 to 2 weeks. If it happens by the 27th, the latest possible date for it to go into effect would be July 27,2021. NSCC-2021-801 cannot become effective after DTCC-2021-005, because then DTCC-2021-002 cannot be enforced.

NSCC-2021-801- Maintins the Daily Liquidity Requirements of Hedge funds if the DTCC deems necessary (ties closely to DTCC-2021-004 and 002). DTCC rules set the expectation, the NSCC rule declares the limit and enforcement of it. APE SPEAK: HEY HEDGIE, GET MARGIN CALLED. Effective Date: was submitted to federal register on March 18, 2021. Will become effective no later than 60 days of submission to commission if no comments or changes are made, and up to 120 days after submissions if revisions are required. Latest possible effective date- July 16, 2021.

OTCC-2021-801- This one fascinates me, and is perhaps the smoking gun of how everything here comes together. This ruling augments the procedures for an asset auction, and allows more parties to be involved in an asset auction. When the squeeze happens, it will almost definitely put some HFs out of business. They will default on countless short positions, loans, etc. When they go out of business, you can't just take their long positions off the market because that will crash the markets. So, what do you do? You auction them off to competitors. Competitors get shares at a discount, the regulatory agencies increase their liquidity to pay off the defaulted members debts, and the market doesn't crash. This ruling allows not only current members to bid at auction, but allows new members to be brought in with the referral of an existing party, or at the discretion of the OTCC. It increases the pool of liquidity that can buy off the shares and options of the defaulted member by bringing more players to the table. APE SPEAK: Hedgie dies out at sea, sharks smell blood and feast on remains. OTCC-2021-801 brings more sharks to the feeding frenzy. Regulatory agency has less carcass to clean up. Effective Date: I haven't been able to confirm this, anyone else have more info?

At this point we're waiting on:

-   DTCC 005 (waiting to be refiled, hopefully by the April 27th to be in effect by July 27th)

-   NSCC 801 (Latest July 16th)

-   OTCC 801 (Unknown - please help this smooth brain)
