diff --git a/Regulations/DTC-2021-007-to-no-longer-allow-manual-adjustments-on-Stock-Loans.md b/Regulations/DTC-2021-007-to-no-longer-allow-manual-adjustments-on-Stock-Loans.md new file mode 100644 index 0000000..cabaabe --- /dev/null +++ b/Regulations/DTC-2021-007-to-no-longer-allow-manual-adjustments-on-Stock-Loans.md @@ -0,0 +1,46 @@ +DTC-2021-007, signed April 20, 2021 is forcing ALL Participants no longer make "manual adjustments" but go through a centralized DTC-monitored portal. +====================================================================================================================================================== + +**Author: [u/creakfast](https://www.reddit.com/user/creakfast/)** + +**[Source](https://www.reddit.com/r/Superstonk/comments/mvh4yy/dtc2021007_signed_april_20_2021_is_forcing_all/?utm_source=share&utm_medium=ios_app&utm_name=iossmf)** + +[🔬DD📊](https://www.reddit.com/r/GME/search?q=flair_name%3A%22%F0%9F%94%AC%20DD%20%F0%9F%93%8A%22&restrict_sr=1) + +TA;DR - DTCC is no longer allowing participants to make manual adjustments to payments on stock loans and repo positions. EFFECTIVE JULY 9, 2021. + +------------------------------------------------------------------------------------------------------------------------------------------------ + +Purpose: + +[![r/GME - DTC-2021-007, signed April 20, 2021 is forcing ALL Participants no longer make "manual adjustments" but go through a centralized DTC-monitored portal.](https://preview.redd.it/8r354pq0cju61.png?width=995&format=png&auto=webp&s=ee456cfca4e3095343e13240a5f2c64727e52ac6)](https://preview.redd.it/8r354pq0cju61.png?width=995&format=png&auto=webp&s=ee456cfca4e3095343e13240a5f2c64727e52ac6) + +So what does this mean? + +Right now, the Participants (Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations) are able to make manual adjustments through DTC's Adjustment Payment Order (APO). + +But what is so wrong with that you ask? + +[![r/GME - DTC-2021-007, signed April 20, 2021 is forcing ALL Participants no longer make "manual adjustments" but go through a centralized DTC-monitored portal.](https://preview.redd.it/i2tz0gm3dju61.png?width=856&format=png&auto=webp&s=363f151c7588ab5a278c695c4ea0b218ab9e9f73)](https://preview.redd.it/i2tz0gm3dju61.png?width=856&format=png&auto=webp&s=363f151c7588ab5a278c695c4ea0b218ab9e9f73) + +Just read that highlighted text.. if that doesn't scream market manipulation, idk what does. + +"WHICH CAN UNEXPECTEDLY SUBJECT THE RECEIVING PARTY TO THE VALUE OF THE ADJUSTMENT." + +So a Participant can make an adjustment without the consent of the contra party. hmmm. this smells fishy. + +[![r/GME - DTC-2021-007, signed April 20, 2021 is forcing ALL Participants no longer make "manual adjustments" but go through a centralized DTC-monitored portal.](https://preview.redd.it/xeu60acieju61.png?width=761&format=png&auto=webp&s=3916ea9dcf0cad87ea847a964416b575d9382966)](https://preview.redd.it/xeu60acieju61.png?width=761&format=png&auto=webp&s=3916ea9dcf0cad87ea847a964416b575d9382966) + +Footnotes on 6 & 7. IN THE EVENT OF A PARTICIPANT DEFAULT - debit settlement obligations to be FULLY collateralized. + +So NOW, DTCC is not letting this happen anymore, but directing all participants to use ClaimConnect to make manual adjustments. + +[![r/GME - DTC-2021-007, signed April 20, 2021 is forcing ALL Participants no longer make "manual adjustments" but go through a centralized DTC-monitored portal.](https://preview.redd.it/pu9llcdseju61.png?width=708&format=png&auto=webp&s=e61651695bb432b3b334cf5cfebd3de911875d15)](https://preview.redd.it/pu9llcdseju61.png?width=708&format=png&auto=webp&s=e61651695bb432b3b334cf5cfebd3de911875d15) + +[![r/GME - DTC-2021-007, signed April 20, 2021 is forcing ALL Participants no longer make "manual adjustments" but go through a centralized DTC-monitored portal.](https://preview.redd.it/e2z6rylyeju61.png?width=706&format=png&auto=webp&s=5f8a0c461998bf84c12271fdf19a9954798494b2)](https://preview.redd.it/e2z6rylyeju61.png?width=706&format=png&auto=webp&s=5f8a0c461998bf84c12271fdf19a9954798494b2) + +Even better, APO has NO validation and matching process. + +In conclusion: + +I think DTCC is doing everything they can to make sure no one can cheat the system anymore while keeping everyone accountable. This is just a very rough summary; I know there are smarter apes out there who can connect wayyy more dots than I can.