The DTC has been taken over by big money
This just dropped in r/Superstonk as posted originally by @timber in chat. Information: nuclear strike lvl... lol.
TL;DR- The DTC has been taken over by big money. They transitioned from a manual to a computerized ledger system in the 80s, and it played a significant role in the 1987 market crash. In 2003, several issuers with the DTC wanted to remove their securities from the DTC's deposit account because the DTC's participants were naked short selling their securities. Turns out, they were right. The DTC and it's participants have created a market-sized naked short selling scheme. All of this is made possible by the DTC's enrollee- Cede & Co.
Link to the reddit post: https://www.reddit.com/r/Superstonk/comments/mvk5dv/a_house_of_cards_part_1/
- Depository Trust Company (DTC) - centralized clearing agency that makes sure grandma gets her stonks and the broker receives grandma's tendies
- National Securities Clearing Corporation (NSCC) - provides clearing, settlement, risk management, and central counterparty (CCP) services to its members for broker-to-broker trades
- Fixed Income Clearing Corporation (FICC) - provides central counterparty (CCP) services to members that participate in the US government and mortgage-backed securities markets
well there goes my afternoon, thanks