Welcome back to the channel everyone today, tony kim, the financial analyst has given his thoughts on the new dtcc rules and why he thinks they're being implemented, and i've got a few other updates as well. Trust me guys you do not want to miss this video, so stay tuned and let's make some money, but guys before i dive into the video. I just want to give a massive shout out the 2 600 of you that have currently ding that notification bell, because you guys are always the first to watch a new video as soon as it's released so guys be sure to drop a like down below subscribe To the channel and ding that notification bell, if you haven't already so that you don't miss another video, just like this one and now i want to dive straight in with the key information, so why the dtcc is the largest security depository in the world. Having processed 2.15 quadrillion dollars in securities in 2019.

on july 22nd, 2021, the dtcc published sr and scc 2021.010. This filing sets out the procedures for short sellers to exchange securities for a cash loan to meet collateral calls in the event of a default. In doing so, its members can avoid a fire, sale scenario or a market crash. Now, if you're not already up to speed - and you don't know what nfcc 2021 010 is, i have explained it in one of my other videos.

So i'm not going to read this full publication line by line, but as a summary of this filing is to establish the securities financing transaction clearing service to make central clearing available at the nscc for equity security financing transactions, which are broadly speaking, transactions where the parties Exchange equity securities against cash and simultaneously agreed to exchange the same securities and cash plus or minus a rate payment on a future day so effectively. What this means is that, if a short seller is in trouble and is about to have his short position liquidated, he can lend out some of his long positions for cash in order to buy back those shares in the future, whether that's a month or a year Or the next day or in 10 years time, that hedge fund promises to pay back the cash they borrowed and an extra rate payment or an extra fee, maybe even plus additional interest on top. This is effectively to avoid a market crash scenario. If a very large short seller like citadel, is about to have their short position liquidated, they might need to dump billions and billions and billions of dollars worth of blue chip stocks into the market all at once.

To afford to buy back the shares that would obviously crash the market and potentially just ruin the s. P. 500.. Now we don't quite know the specifics on how exactly these transactions are going to work, whether the lending company is going to be able to lend their shares out for a hundred percent of the market value or whether a different institution or a different hedge fund is Going to be able to lend them pennies on the dollar, whether it's say 90 percent of the market value or 80 percent of the market value.

However, we do know that the nsec also filed rule 2021.011, which basically says that they can disconnect participants from the market. If they're a danger, therefore, if citadel will lend out all their long positions for cash and then use that cash to try and just short the stock even more, instead of buying back their short positions, the dtcc or the nfcc can effectively just disconnect them from the Market, so their orders don't go through. That is obviously good news, because a lot of people were asking in the comments tom. What prevents these hedge funds from just taking all this cash and shorting more effectively.

The dtcc are gon na, be the backstop and put an end to it and say right, hang on no more you're. Already too heavily leveraged and you're gon na get liquidated. You can't lose all this additional money that you've just borrowed, so we're putting an end to it anyway, back to tony kim, it begs the question: why would the largest security depository in the world take steps to shield the market against the fire sale borne by short Positions if the threat of such an event wasn't real. Why are these safeguards necessary at all, because i was told by the mainstream media that meme stocks, such as amc and gamestop, were just elaborate pump and dump internet scams, but only an idiot would blindly hop on a social media, driven speculation.

Bandwagon headed for certain financial ruin. Obviously the mainstream media calls us a cult and says that all of our due diligence is nonsense and just that the amc company fundamentals are terrible. So it's definitely going bankrupt that there's no fundamental basis for investing in a dying, brick and mortar video game retailer and a movie theater chain in the wake of digital transformation, that the stock market has become gamified like a casino but naked short selling happens, but not On the scale that retail thinks it is, mainstream, media are trying to tell us that naked shorting never really happens and on the one percent occasion that it does they're a hundred percent caught from it and fined, which we know all too well is not really the Case the dark pool abuse is just a wild conspiracy theory propagated by tin, foil, hats that don't understand basic market mechanics and that somehow this rising dark pool percentage of 50 to 60 to now 70 being the norm for amc is just normal market behavior and is Not manipulation of any source, supposedly it's absolutely normal - to have 71.5 percent of transactions going through the dark pool, 7.3 of transactions, being institutional block, trades, 17.7 of transactions, being institutional sweep orders and only 10 of activity being retail trading. Absolutely normal trust me guys and that dumb money does not have the intellectual capacity or resources to develop an edge in the market and only smart money with their 20 annual returns that only just narrowly beats the s.

P 500 is considered the biggest edge in the market whatsoever, and the smart money can't possibly make any more than that by even committing illegal activity, because supposedly illegal activity never happens in the market. Could it be that five plus million individuals worldwide are gullible enough to sponsor the greatest misinformation campaign ever concocted, orchestrated via the internet, the biggest dead cat bounce of all time? Or could it be that a few bad actors got greedy careless and found themselves overexposed on the wrong side of a trade with an infinite downside and therefore use their market, manipulating abilities and their size and dominance, and their too big to fail mentality to try and Force themselves onto the right side of the trade, at the detriment of millions and millions of retail investors like you, and i, if you haven't seen the film here's, an excerpt from the big short that explains just that. What, if he's right, you want him to be right? Yes, i do. The banks have given us 25 interest rates on credit cards.

They have screwed us on student loans, so we can never get out from under then this guy walks into my office and says those same banks got greedy, they lost track of the market and i can profit off their stupidity yeah. I want them to be right. The simplest explanation is usually the correct one: two excerpts from the latest dtcc filing below. Why would such specific default conditions be stipulated if there was no risk of these conditions ever being realized? Nscc understands the sfts, provide liquidity to markets and facilitates the ability of market participants to make delivery on short sales and thereby avoid failures to deliver naked shorts and similar situations.

I thought those never happened. Why would the dtcc take steps to reduce the potential for market disruption from fire sales if there wasn't a material risk of such an event? Nscc believes that broadening the scope of central clearance at nfcc to sfts would reduce the potential for market disruption from fire sales. For a number of reasons, are these loaded questions or did the cow actually jump over the moon? I also wanted to quickly show you this screenshot i saw when i was going through reddit whale alert, just under 10 million dollars worth of amc shares purchased today at 40.29. Let's go as you can see.

It's a whopping great big order for 244 000 shares of amc placed it just after three in the afternoon. This is likely another fund picking up shares in amc or adding to their position at the forty dollar mark. Therefore, they clearly see amc going way higher than forty dollars, otherwise they wouldn't be buying. So many shares - or maybe it's a short who realizes the squeeze, is just around the corner and is trying to get out while they still can and covered their short position.

Although i think probably the former guys be sure to let me know down in the comments below what you think about tony kim's thoughts, do you think it's just a wild coincidence that the nsec have put in this new rule and the market crash is never going To happen, especially not because of the shorts, or do you think the dtcc have gotten on and they're just trying to prevent a market crash when amc squeezes. If you want to pick up some shares in amc, but you haven't even yet signed up to a trading platform, be sure to sign up with fidelity because they don't sell their order flow to market makers like citadel who root that order flow through the dark pool. Basically, don't use weibull or robin hood to buy shares in amc because they do sell their order flow. However, saying that weibo is an excellent beginner investment platform.

They've got great charting they've got news company fundamentals and figures. The option order flow they've got absolutely everything. So if you do want to sign up with weeble to buy some other stocks, maybe in apple, amazon or tesla, be sure to use the link down in the description below to get some free shares and if you're from the uk be sure to sign up with Free trade, because they also don't sell their order flow link in the description again to get some free shares and, as always guys, if you enjoyed this video, be sure to check out some of my others. Alternatively, subscribe to the channel and ding that notification bell, because that way, you'll be alerted when i upload a new video cheers.