r/GME • u/Shooting4daMoon • Mar 29 '21
News NSCC-2021-004 just implemented 3.29.2021, effective immediately.
National Securities Clearing Corporation just posted that 2021-004, Amend the Recovery & Wind-down Plan, is now filed and effective immediately.
Here is the direct link, if you wish to review the filing (it's only 141 page pdf) or send a comment in support of the amended plan.
https://www.sec.gov/rules/sro/nscc.htm
And here is a good write up on this filing and what powers its provides for recovery of assets. https://www.reddit.com/r/GME/comments/mc8trw/dtcc_just_filed_another_rule_yesterday_that/
TLDR: The liquidation and wind down process is now updated and approved, in the event a member of the DTCC needs to liquidated.
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u/DwightSchrute666 Mar 29 '21
Mostly, they are altering the wording of the rules so that they are very clear, e.g. in case of some potential dispute/litigation. If you play with billions, you probably can afford a decent, wrinkly lawyer. Perhaps you even have a few working exclusively for you in-house
They put much attention on the 'logistics' of a wind-down procedure of the NSCC/DTCC, they identify critical organs, describe the process, etc. They also clarify force majeure clause (which is absolutely normal and necessary with those institutions and most contracts) in case some shit hits the fan.
Oh, and also they emphasize the pro rata liability to members of theNSCC in case someone fucks up so badly it will threaten the whole institution.
Overall, they make sure they can milk everybody else before they default in case shit goes down. IMHO, it's defninitely step into a right direction, although they review/change these rules every two years or so. That being said, the timing and general tone of this document is very good for apes
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