Thread by @live2beingu

#AMC #GME #Stonks #Market #TSLA #wallstreetbets #mooning #squeeze #OCGN Alright, good morning everyone I hope and trust you all have had a wonderful morning thus far. Lets get into this new SR-DTC-2021-007 rule shall we. Today's Recap is about "Going Digital"

So this whole rule in a nutshell is that DTCC is going to an automated system called ClaimConnect for the following reasons:
1. Manual adjustments are not subject to the DTC's risk Management Controls, which can unexpectedly put the receiving party at risk.
2. It lacks a unique

identifier or way to track the adjustment.
3. no automated notification process, so you can see where and what's happening to the adjustments as they are being made or accepted by either party.
4. No platform exists where you can see the work being detailed out.

5. Only one party can submit a manual adjustment at a time.
6. 9My personal favorite and what got me upset )no validation or matching process, so parties often have to submit multiple adjustments before the final agreement is made.

Okay L2BU I get that but what does it mean

in terms I can understand. Best way I can explain it is that the DTCC had a system of controls that would allow participants to make adjustments to principal and interest payments on stock loans and repurchase agreements. However, the controls they had in place missed the mark

or came up short because it wouldn't allow the DTCC to mitigate the risks involved should a Participant default on the loan or repurchase agreement. In addition, because the adjustments were made manually there was no way to track, display, update, or quantify your specific

adjustment payment order. Leaving some Participants blind sides open for direct hits. (yes I just used a football term lol). So why is that important. Because it invites transparency between the parties making for a smooth agreement between one side and the other. Closest

example I can get is when you have a bill in the mail you thought would be 100 and then you find that it's up by 400 dollars. But the organization has no way for you to see what's up. You call them to find out what happened. After being on hold 15 minutes, the person says bill

is right, charges listed are those you incurred. To just get it over with, you pay the bill w/customer rep not before you give him/her a piece of your mind. Because of the lack of transparency you are beyond upset. Had you known you might've done things differently. This is what

the DTC used to do. Now they use the ClaimConnect. Even though they've had this service since last year, they were trying to make it so that the platform for participants is user friendly and that claims presented by either sides would occur almost immediately. Think about it

this way. It's like you go on amazon and look at your orders -. It'll tell you the date, price and quantity, and the product number, and everything else you need to keep track of it. Hence, By switching and adapting their manual adjustments to ClaimConnect DTC upgraded to a

digital service platform. Now once the ClaimConnect is used the process becomes fully automated and settled through what's Securities Payment Orders or "SPOs." This would encourage a fair, accurate, complete, and timely adjustments being made. The change will take place on 7/9/21

I think overall this is a great rule. By going digital it'll allow market participants to have a more accurate picture of what adjustments are being made to their stock loan or repurchase agreements in real time. while their is no definitive answer...my initial thought of its

impact on retail investors and I'll post an update when
I find more info...is that it'll give us a chance to see the agreement any adjustment being made when our shares are out on loan or needing to be repurchased. Instead of not knowing and only seeing one side of the

transaction. I hope that helps. I'll post more if the DTC provides more info as to how the rules might affect retail further but this appears to be where I think their thought process is headed. Have a great day if you can. Be well. @threadreaderapp unroll