๐Ÿค” Speculation / Opinion

This document is scheduled to be published in the Federal Register on 10/04/2023

NSCC Alert! New Haircut schedule will be published in the Federal Register 10/4/23 & effective within 60 days. Why? IDIOSYNCRATIC RISK!

"Haircuts" Recall, it was on 9/22 NSCC submitted to update the definition around "Haircuts": This is a whopper of a statement: * "Through its review, NSCC has observed that under volatile market conditions with elevated frequency and magnitude of securities price movements, the collateral value of Eligible Clearing Fund Securities
dismal-jellyfish ๐Ÿค” Speculation / Opinion
2/5's do not collect margin

September 2023 Senior Credit Officer Opinion Survey, special questions about trading of zero-days-to-expiry (0DTE) options: "Two-fifths of the dealers do not collect margin on 0DTE options."

Highlights: * Approximately two-fifths of dealers, on net, reported that they had increased the resources and attention they devoted to managing their concentrated credit exposure to other dealers and other financial intermediaries over the past three months--highest since June 2020. * Approximately one-fourth of dealers, on net, indicated increased funding demand for
dismal-jellyfish ๐Ÿค” Speculation / Opinion
NSCC provided notice to its Members confirming VaR Charge changes effective 10/2/23. Why? IDIOSYNCRATIC RISK! I believe these changes help set the stage for MOASS.

NSCC provided notice to its Members confirming VaR Charge changes effective 10/2/23. Why? IDIOSYNCRATIC RISK! I believe these changes help set the stage for MOASS.

This Follows up the planned implementation announcement from 8/25/23: I'd like to call folks attention to something called out in the 8/25 announcement but not today's: "Haircuts" It just so happens, on 9/22 NSCC has also submitted to update the definition around "Haircuts": This is a
dismal-jellyfish ๐Ÿค” Speculation / Opinion
"Similar to the role of securitization during the GFC, tokenization can potentially disguise riskier or illiquid reference assets as safe and easily tradeable, possibly encouraging higher leverage and risk-taking."

"Similar to the role of securitization during the GFC, tokenization can potentially disguise riskier or illiquid reference assets as safe and easily tradeable, possibly encouraging higher leverage and risk-taking."

TLDRS: Are the authors from the Fed saying the quite part out loud? Tokenized GME can potentially disguise riskier or illiquid reference assets as safe and easily tradeable, possibly encouraging higher leverage and risk-taking?!?!?!?! * "Finally, similar to the role of securitization during the GFC, tokenization can potentially disguise riskier or
dismal-jellyfish ๐Ÿค” Speculation / Opinion