Welcome back to the channel everyone today, i want to talk about why many brokers won't survive the squeeze, and actually it boils down to something that happened in january when the dtcc actually requested hundreds of billions of dollars from various different brokers, so stay tuned, and let's Make some money, and now i want to dive straight in with the key information, so some of you might start by saying. Well, hang on tom, i thought the nfcc only requested three billion dollars from robin hood. I thought the sec report revealed that no other brokers experienced a margin call on the 28th of january. Well, i want to play through this video of the weeble ceo discussing the dtcc requirements and clearing firms shutting down trading during the last sneeze due to hundreds of billions of dollars being requested.

So let's hear what the weeble ceo had to say, ss are so volatile. Dtc has raised that requirement collateral rate to 100, meaning that for every single dollar that exchanges hands in those stocks, the clearing firm has to send for deposit for two whole business days. That exact same amount of the notion of the trade. Now, when we're talking about gamestop at 250 350, billions of shares trading we're talking about hundreds of billions of dollars that the clearing firm physically has to send in cash to the to the dtcc to hold there for two whole business days and, to be frank, the Clearing firms are not that well capitalized; they can't do that.

So, in order to stop the clearing firm from going out of business, they stop the settlement of those ships so right there we can hear the dtcc changed their collateral requirements on the 28th and 29th of january. They required one dollar of collateral for every single dollar of gamestop that was traded and therefore because there was millions and millions and millions of shares traded. The dtcc was requesting hundreds of billions of dollars. So first i want to look at robin hood's.

Three billion dollar margin requirement or three billion dollar margin, call and work backwards and figure out just how much cash would have been requested by the dtcc during the january sneeze. So obviously, robin hood received a three billion dollar margin requirement or margin call. Let's assume at that time, gamestop was trading for around 300 per share, which i think is fairly reasonable. Considering gamestop saw upwards of 483 dollars per share.

Three billion dollars divided by 300. A share gives you around 10 million shares that was traded in robin hood. During that point, which resulted in the dtcc's three billion dollar margin call, if we take it up on the 26th of january, we can see that there was a 175 million shares of gamestop that was traded on this one day. The price ranged between somewhere between 88 and 150 dollars per share, giving a midpoint of somewhere around 120 dollars per share.

175 million shares times 120 dollars per share is around 21 billion dollars. That would have been requested from the dtcc on this one day. Now again, on the 27th of january, we saw a volume of around 91 million shares and a trading midpoint of somewhere around 315 dollars per share. It had a high of 380 and a low of 249.

91 million shares times by around 315 dollars per share gives a dtcc capital requirement of around 28, nearly 29 billion dollars. So in the course of just two days for gamestop, that was around 50 billion dollars requested by the dtcc and that doesn't even include amc as well. Now, i think what happened on the morning of the 28th of january is that obviously the nfcc and the dtcc called robin hood to make that three billion dollar margin requirement. They also started calling multiple other brokerages and multiple other clearing firms requesting all of that money.

When the clearing firms just decided that actually it's way easier for us to turn off the buy button, but i think during the next run up and hopefully the squeeze which hopefully will occur this january, i don't think turning off the buy button is going to be An option once again, because they've already played that card and it did not work out well for those brokers and for those clearing firms and therefore i think that during the next run-up, the dtcc are going to slightly change their strategy and not request as much margin. Collateral either that or many of these brokers and clearing firms are going to go under and they will not survive the squeeze. I think either many of these brokers are going to go under and will not survive the squeeze or the sec, and the dtcc will have to work together to halt trading on amc and gamestop entirely, not just turning off the buy button, but halting the trading while They investigate - you may remember from my video the other week about these non-regulatory halts, where the sec can halt trading on a stock for up to 10 days, while they investigate this, i think could be the only way that many of these brokers and clearing firms actually Survive the next run-up and survive the squeeze with mumu's latest promotion. You can get your hands on a free share of amc.

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If you deposit a hundred dollars, you get two free shares and the amc. But if you can deposit two thousand dollars, then you get all five free shares and the amc as well - and this, i think, is why it's already over and it's already been over for some time. This poster on reddit says: i don't understand why anyone freaks out about anything at this point. The squeeze is inevitable.

It's over. It's been over already for months. It's now in the hands of the fbi, the department of justice, the dtcc, the sec, the big hedges and the brokers they're all trying to come to some form of agreement in which they can allow the squeeze to happen. And they can allow these hedges to be bankrupted or forced to cover all of their short positions without destroying the wider market.

At the same time, the sec and everybody else here is going to try and do anything they can to save those major banks and potentially bail out those major banks and do anything they can to save the wider market. While forcing these hedgies to cover and effectively bankrupting them, he said why would they have all of these major players, like the department of justice, fbi, sec, dtcc and others in this one security play unless they already know, what's going to happen, they've been insulating themselves and The market, the best they can for months in preparation for the attendee exchange, he says, small and medium hedges will be scorched and big banks will likely get financial assistance aka a bailout. He says i do believe one big player will be erased for public perception. His guess is bank of america, which is, coincidentally, the prime broker for citadel.

He says: there's no way this isn't going to happen as everything is so out of control. We can just see the volatility in the market recently and this is all being caused by the hedges being maxed out on their leverage and basically having no room to wiggle. He says just relax, be prepared and have a plan for the cash ahead of time and don't get overly greedy. They will not allow this to run to five hundred thousand dollars to a million dollars per share number and pay it all out again.

I think this is slightly subjective, as i do believe there could be one or two trades at these high numbers, but obviously because of the distribution most of the trades are going to take place at lower numbers. He says know what number you need to do, whatever you like with whenever you like, and execute the play now for me, there's been a few signs recently that suggest to me that the squeeze is coming. But what are those few signs that i've been seeing recently? Firstly, is a combined tweet here from boss, blunts and another poster here as well. Firstly, it says just so you know: cnbc is now running ads that claim melvin close their short position.

Why would you spend money to convince the public that melvin closed their short position? If it did close good for them, but why are they running ads? You can see here on twitter there's a promoted sign from squawk box, saying that melvin capital closed out of its gamestop position. Clearly, they're trying to get as many people as they possibly can to close out of their gamestop and amc positions while they still have the chance and the combined part here from boss. Blunt suggests that several people in his think tank have been contacted by fidelity, asking them to sell their amce and sndl shares. Clearly, it's not only cnbc, but it's also the brokers themselves like fidelity that are trying to get people to sell their amc, whatever the cost to me, this suggests they are very, very close to the end and they're trying to do anything they can to reduce the Overall financial burden - the second thing that suggests it to me is how bitcoin has been behaving over the last few weeks.

It first fell from around 52k down to around 47.. It then dropped again to around 44 dropped again to around 42, and it just recently dropped the other day to around forty thousand dollars per bitcoin. This to me that hedges are taking hundreds of millions and hundreds of billions of dollars out of bitcoin trying to do anything they can to free up any remaining liquidity to meet those margin calls for another few days we can see that bitcoin has experienced some of The highest trading volume - it's ever seen over the last few days, trading around 88 billion dollars worth of bitcoin in a 24 hour period. Again, this to me suggests that hedges are doing pretty much anything they can to liquidate their holdings of bitcoin and other cryptocurrencies to free up liquidity for those final few days.

The next thing that keeps me confident for january is somebody here called blocked grain king asking al. If he's still confident that the squeeze happens in january, our replied obviously saying yes, he does believe the squeeze still happens in january, and i think this is because of the massive amount of call options that are in the money and also just a massive open interest. In call options for the 21st of january 2022.. In my video tomorrow, i've stumbled across some brilliant pieces of due diligence around these cool options that are in the money or at the money, obviously not call options that are massively out of the money and how they will impact the next amc and gamestop run-up.

And finally, for today i've got a bit more confirmation about the gamestop and loot ring partnership, and the interesting thing is that gamestop at one point actually explored the acquisition of loop ring. He says here. Barons has reported that a source familiar with the matters stated that gamestop explored an acquisition of decentralized financial company. Loop ring gamestop, ultimately withdrew amid logistical concerns related to loot brings operations in china, so gamestop.

Don't believe that loot bring is a bad company and they don't want to work with them. They just knew it'd be logistically difficult, because loot bring is based in china, and china have so many different legal regulations and laws, and therefore it's most likely just easier for gamestop to work with loot ring, instead of acquiring them flat out. It says when barons questioned the source familiar with matters at gamestop about the looping speculation, the source stated that gamestop actually explored an acquisition of loot print but ultimately withdrew from talks amid logistical concerns related to loot, prince operations in china and, interestingly, back in november, the Loot prince ceo, daniel wang, stated that he could not comment on that when asked by a reporter about the decentralized finance company's rumor deal with gamestop. Now.

Obviously, ceos can't comment on things when there is a deal ongoing or there is a deal in the works back in november blueprint had already announced. They were working with somebody for an nft platform and therefore it's likely that in november, loopring were working with gamestop and therefore that's why the ceo could not comment on it. When questioned it says. Gamestop withdrawing from acquiring loot ring does not prevent them from utilizing.

Loot rings: zk roll up layer, 2 technology to power, their nft marketplace, the gamestop nft marketplace and the loot print nft marketplace were supposed to be released in quarter four. I imagine there's just some final testing before they release it either sometime this month or sometime in february, guys be sure to. Let me know down in the comments below what you think about the weeble ceo interview and whether you think that many brokers will or won't survive the squeeze and, as always guys if you enjoyed this video, be sure to check out some of my others. Alternatively, subscribe to channel and ding that notification bell, because that way, you'll be alerted when i upload a new video cheers.