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What's that new rule everyone is talking about now?
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| Author | Source |
| :----: | :----: |
| [u/npham54](https://www.reddit.com/user/npham54/) | [Reddit](https://www.reddit.com/r/amcstock/comments/or2wdx/whats_that_new_rule_everyone_is_talking_about_now/) |
---
[DD](https://www.reddit.com/r/amcstock/search?q=flair_name%3A%22DD%22&restrict_sr=1)
***** I am NOT a financial advisor & this is NOT financial advice. Take everything you read, see, or hear with a grain of salt. Verify it ALL with your own DD & come up with your own conclusions! *****
TL;DR - It's the DTCC's version of a REPO/RRP system. They want the daily profits of possible millions per day ~~of up to $45 million+~~ instead of giving it back to the FEDs. NSCC-2021-010 is not a rule, but a handbook for their new system.
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This is the next new big toy everyone is talking about huh?
[NSCC-2021-010](https://www.dtcc.com/-/media/Files/pdf/2021/7/22/a9029.pdf)
Basically what is it? I'll explain in a bit but let me share this first because it's relevant.
The DTCC saw that the banks and the FED are working with one another to make both parties some nice coin. We've seen REPO/RRP rates go from ZERO to .05% on money borrowed.
Doesn't sound like much at face value right?
Let's calculate just one day to use an example. We now the REPO/RRP rates are thru the roof. We've seen days where we've gone over $900 BILLION dollars in a single day. That sounds like a good round number to make an easy calculation with, so let's use it.
~~The current interest rate is 0.05%.~~ (Gonna verify if this is wrong, a member said that it's calculated annually. Not sure if this is right or not but will check)
~~$900,000,000,000 x 0.05% = $45,000,000~~
~~Yes, interest earned for 1 day of borrowing cost $45 MILLION dollars. I don't care how rich you are, that's a shit ton of money in less than 24 hours. Remember, this shit is happening on the DAILY!~~
~~If they keep making that much money each day Monday - Friday (federal holidays excluded), the interest earned is up to an eye popping $225,000,000 for a single week if they keep up with the insane amounts!~~
*****EDIT*****
<https://fred.stlouisfed.org/series/RRPONTSYD>
[![r/amcstock - What's that new rule everyone is talking about now?](https://preview.redd.it/8zydu119t9d71.png?width=3831&format=png&auto=webp&s=793bb45c7ee1898740b6b4530eb40c48f053c045)](https://preview.redd.it/8zydu119t9d71.png?width=3831&format=png&auto=webp&s=793bb45c7ee1898740b6b4530eb40c48f053c045)
June 30th
$991+ BILLION dollars in REPO/RRP agreements.
& here's the link to the Fed's own site where most people are pulling the data from.
<https://apps.newyorkfed.org/markets/autorates/tomo-results-display?SHOWMORE=TRUE&startDate=01/01/2000&enddate=01/01/2000>
****EDIT****
So you know, anyplace where there's money to be made, someone is gonna take advantage of it. Why give hundreds of millions weekly to the government when they can keep it for themselves?
Hence the reason why NSCC-2021-010 was brought along and OH SO QUICKLY! Too much money is NOT being moved into the DTCC's pockets!
WE have to remember who they truly are, basically made up of bankers & huge institutional "investors".
So basically all these 350+ pages of this new "rule" is actually not a rule at all.
It's the DTCC's own version of the government's REPO/RRP system.
Basically it's the handbook for the whole system they've been working on. It tells you how to qualify for the program, who can be approved, and the fact that you can "refer" other members.
Now remember the REPO/RRP system is meant to borrow money overnight and this does exactly the same. Instead of some treasuries, they're going to have to use their own stock assets as collateral until it's repaid with interest by the end of trading day.
<https://www.dtcc.com/-/media/Files/pdf/2021/7/22/a9029.pdf>
[![r/amcstock - What's that new rule everyone is talking about now?](https://preview.redd.it/glbpdpgon9d71.png?width=1200&format=png&auto=webp&s=9d664905226281b15a44c98f8365feba693ea2c0)](https://preview.redd.it/glbpdpgon9d71.png?width=1200&format=png&auto=webp&s=9d664905226281b15a44c98f8365feba693ea2c0)
EDIT - I do apologize for any mistakes or misunderstandings I may have made ahead of time. If there is, it will be corrected. Last thing I wanna do is spread misinformation, just as if not worse than FUD.