Feb 8, 2021Liked by Marc Rubinstein

I'd be interested to know how often a clearing houses (eg DTCC) make intra-day calls for addition capital. I've seen some people suggesting this was unprecendented but I suspect that's not true. Surely this must happen fairly regularly, e.g. something like several times in an average year? Does it differ between equities and derivatives markets?

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Thanks Marc. Great article and history on how the current clearing systems originated. As an LFC fan myself that's great to read!

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Feb 6, 2021Liked by Marc Rubinstein

Thanks Marc.

1. Spot on about clearing houses trending towards monopoly positioning...central place for risk management is good for both customers and regulators broadly speaking.

2. Remarkable to consider the scarcity of examples of when clearing houses get it wrong, in the context of the massive volume and value they risk manage. The risk management professionals in these places are some of the smartest people I have ever worked with.

3. Worth adding to your point about business models: some clearing houses such as EuroCCP and LCH Group, are wholly or majority owned by an Exchange Group so are vertical in terms of transaction flows but not siloed because they serve multiple customers including competitors to their Exchange Group owners at the execution level.

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So, who regulates the regulators.? Correct me if I’m wrong, but it sounded like the DTCC operates with immunity, and their integrity is “supposed to be above reproach”! I understand balance sheets getting off a little bit from time to time; however as gate keeper, massive amounts of cash/ assets simply missing, should never happen or be allowed. Although an adjustment of any amount shouldn’t be a surprise. Or market correction, as they like to call it. That was my lead up to the meat of the question. How does a company on the stock exchange have more shares sold than exist to a point of financial harm to a nation, vs only a company? If individuals exist that have learned to manipulate systems to a point the DTCC can’t catch exploitations; then A) the DTCC is negligent in its duties, or B) they are complicit in fraud and theft with the loophole manipulators stealing “We The Peoples Money”.

Final note: I’d say the government isn’t complicit; relying on the DTCC’s judgement in clearing; however, when brokerages operate with over 100% shares in a company,”who by the way are regulated by government”, either don’t get fined, or only fined administratively without compensation to the public, it appears complicity also.

At this point, jail and compensation to those stolen from is the only answer to not being a complicit getaway driver. GME will determine the depth of the deep state and 2 standards of justice.

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The Iron Bank for a market economy? I mean, there always has to be an Iron Bank.

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