Why we, and our whales, are waiting for the DTC/OCC regulations to [potentially] initiate the squeeze, NOT the recall

DD 👨‍🔬

Large whales like BlackRock have the obvious potential to initiate a squeeze, were they to recall their large number of loaned out shares, but one thing most of you are missing is until these regulations are locked in they wont – regardless of the recall/voting. All of you should read these posts below, they very plainly, and brilliantly, lay out what exactly those regs are doing for our whales (and the markets health/safety in general) in great depth, but to give you a simplified version:

In short, (from the first link): “the reason we’re not going anywhere is because no one wants the system to fall apart until these “firewalls” are in place to protect the non-defaulting DTC and OCC members and the market itself. But furthermore, it’s about wealthy entities lining up to feast on the discounted assets liquidated from the defaulting OCC members via the auction process. OCC-004 eases the on-boarding of non-Clearing Members (BlackRock? Fidelity?) to the bidding process.”

As it stands, major clearing houses like the NSCC traditionally would have pulled funds from their members, such as: BofA, BlackRock, Fidelity, Vanguard, JP Morgan, Morgan Stanley, and many more, but basically all of our whales(!), in the event of a member default (like when someone gets squeezed). So its absolutely NOT in their interest to cause a member to default and create potentially one of the largest squeezes in history, because the NSCC/DTC would by right pull money from THEM to prevent their own collapse (see Rule 4 in the NSCC member contract).

Well now these rules, SR-DTC-2021-004 and OCC issues SR-OCC-2021-003 and SR-OCC-2021-004, some of which are still pending, would allow the DTC/OCC to draw first from the defaulting members deposits/contributions (of which all members are required), then use that defaulting members assets as collateral to borrow from other members (our whales) in order to stay liquid.

Theres more to it, read these posts, this user is someone you should all be following and needs to be upvoted, but these rules would allow our whales to also buy these defaulting members assets on the super cheap and protect them from the worst of the squeeze, of which they are currently at risk! So until these are in play, there is no reason for our whales to light this fuse.

https://www.reddit.com/r/Superstonk/comments/mnpzu5/srocc2021004_why_this_proposed_rule_change_is/

https://www.reddit.com/r/Superstonk/comments/mkju4s/srdtc2021004_and_srocc2021801_for_apes/

https://www.reddit.com/r/Superstonk/comments/mkvgew/why_are_we_trading_sideways_why_is_the_borrow/

Edit:

here is another post explaining the NSCC member contract, also a link to it:

https://www.reddit.com/r/GME/comments/ma5did/nscc_clearing_fund_dd_why_the_long_whales_are/

I’m just gonna add, thank you all for the awards, please show some love for both c-digs and legalese, this is completely all their work, I just couldn’t believe how few upvotes their posts have and wanted to post some kind of synthesis because one of my comments in another thread was getting so many questions about their data/info

Obligatory, this is not financial advice!