NEW FINRA RULING SR-FINRA-2021-009!!! Link in the comments. This rule specifically talks about the January squeeze and liquidity, and the 2008 crash. Let’s get some wrinkled brains to teach us smooth brains what this means!!!!

sec.gov/rules/…

Discussion 🦍

Relevant Comments by u/Criand

Loooool

So they want to put these liquidity tests on a schedule! Like tomorrow’s liquidity test but consistently.

They want to make sure that there are no idiots with dumbass positions (page 4, copied below in a reply to this comment). If there are idiots, then it’s margin call city baby.

This is a huuuuge middle finger to people with big short positions who experience market volatility. They need to calculate a LOT of things in their risk, especially open short positions and stupid derivative transactions.

This is not necessary for the MOASS. But prevents future ones. GME is that once in a lifetime opportunity!

Per Page 4:

Members that would be subject to the SLS requirement would provide detailed reporting, using the SLS, as to their:

• reverse repurchase and repurchase agreements;

• securities borrowed and securities loaned;

• non-cash reverse repurchase and securities borrowed transactions;

• non-cash repurchase and securities loaned transactions;

• bank loan and other committed and uncommitted credit facilities;

• total available collateral in the member’s custody;

• margin and non-purpose loans;

• collateral securing margin loans;

• deposits at clearing organizations; and

• cash and securities received and delivered on derivative transactions not cleared through a central clearing counterparty (“CCP”).