Friday News Dump! Reviewing the Membership Updates (a9016) posted by the DCCC for the NSCC -- with info about naked shorting by one of the firms called out today!
Evening r/Superstonk, jellyfish here taking a look at a9016 posted by the DCCC this afternoon.
The first pages look pretty benign, with firms performing what looks like housekeeping retiring and renaming accounts:
Looks pretty boring...
However, scrolling further into the document, there isn't just renaming going on, it looks like some accounts being retired altogether:
Now the formatting leaves me guessing a little (you'd think they'd have this down after 005), but I believe is about Alternative Investment Product Service Accounts sunsetting.
What is Alternative Investment Product Service?
https://www.dtcc.com/wealth-management-services/alternative-investment-products
Who are Scattered Corp and BB&T Securities, LLC?
I didn't find much of a website for Scattered Corp, but I did find this:
I guess I am glad their last day of trades was yesterday?
But it gets worse... In another action:
But wait, there's more!
more
The plaintiffs also complain that Scattered falsely marked its trading tickets โshort exempt,โ meaning that Scattered was authorized to sell on down ticks in the market. โ(This means authorized to sell at a price equal to or below the last sale price, even if that price was equal to or below the next preceding sale price.) โ If Scattered was not exempt, it may have to answer to the Chicago Stock Exchange or the SEC, see SEC Rule 10a-1, but we do not see how its claim of exempt status could have deceived anyone in any respect that bears on this case. โ Exempt or not, a short sale is a short sale. โ If anything, the claim of exemption would lead investors to believe that Scattered was going to do more short selling than if it were not exempt, since exemption would free it from restrictions on short selling. โ And the plaintiffs' whole complaint is that they were fooled by the magnitude of the short selling that Scattered did.
OK, now I am really glad they were given the boot, what about BB&T Securities, LLC?
The secret ingredient is always crime... https://www.sec.gov/litigation/admin/2019/ia-5165.pdf
https://www.sec.gov/litigation/admin/2016/ia-4506.pdf
Other BB&T no-no's:
https://www.sec.gov/litigation/admin/2019/34-85249.pdf
https://www.sec.gov/enforce/ia-5002-s
https://www.sec.gov/litigation/admin/2018/ia-5002.pdf
Needless to say, those guys suck! Good riddance!
Ok, the next thing I want to draw your attention to is MF Profile service and MF Info Xchange service.
https://www.dtcc.com/wealth-management-services/mutual-fund-services/mutual-fund-profile-service-i
https://www.dtcc.com/wealth-management-services/mutual-fund-services/mf-info-xchange
Ok, so this is about 'critical notifications', why should we care? Look who joined the fray, with go-live dates anywhere from today through Tuesday:
Interesting....
I wonder what sort of time-critical information they could be gearing up to share?!?
Finally, the last thing I would like to show you, looks like some folks getting kicked off the OTC market?
More intrigue!
I hope you have enjoyed this walkthrough (even if it makes your blood boil) and it will be interesting to see any additional membership updates in the coming days! Have a great weekend all!
EDIT: Sorry, forgot a TL:DR
TL:DR -Looks like a mostly routine filing on a Friday dump. However, Scattered Corp (naked shorting scum) and BB&T Securities, LLC are naughty, naughty entities (but being retired). Some of the new folks entering 'critical notifications' services appear to be gearing up for something....? Lastly, some folks threw out the OTC market? with 'Delete Last Trade Date' wording for dates this week.
EDIT 2: updated to proper images.
