SR-NSCC-2021-010. Peter Hann covers his thoughts on what the DTCC is currently doing and why.
Peter Hann CFA - Following
Investment Portfolio Manager at City of Calgary
As this saga has evolved, I have posted about
efforts by the DTCC to update rules polices. I have specifically
mentioned them as being a bullish indicator because the intent
seemed to be to ring fence an incautious actor from the rest of
DTCC participants in advent of a leverage induced meltdown.
Indeed, there were specific rules passed for day to day
reporting of positions and potential forced liquidations.
So, the rules passed, and nothing happened. No squeeze, no margin calls, more ridiculous price moves that can't be attributed to a 80+% retail base that mostly just buys, holds, and buys more.
My sense, and this is just speculation, is that once the DTCC started getting more accurate reporting data on the scale of system wide shorts, they realized margin calls would destablize the entire financial market.
You can't say they aren't still working on solutions, and yesterday's drop of NSCC-2021-010 proves that. It's a monster document, and I doubt I'll ever have time to fully read it, but the intent appears to create a liquidity facility similar to the repo market, but for equities.
And seriously, you can't be but helped to be encouraged by the straight talk on page 4 of the document:
AM - 23 Jul 21 - Twitter for iPhone