Fortress Financial Group fka FFGO

[lucmariepierre]

NSS Must Be Covered!!!!!!!!!!

ENFORCEMENT is COMING for NSS!!!!!!!!!

DTC RULE CHANGE for SR NSCC-2021-010

A NEW FACILITY BEING CREATED; The Securities Financing Transaction (SFT) Clearing service!!!!!!!!!

About the SFT Clearing Service
The Securities Financing Transaction (SFT) Clearing service provides central clearing for equity lending and borrowing transactions, leveraging the clearing capabilities, risk management, and efficient infrastructure of the DTCC equities clearing subsidiary, National Securities Clearing Corporation (NSCC).

MORE HERE:

https://dtcclearning.com/products-and-services/equities-clearing/sft-clearing.html

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NSCC understands that 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.

FULL PARAGRAPH:

SFTs involve the owner of securities (typically a registered investment company, pension plan, sovereign wealth fund or other institutional firm) transferring those securities temporarily to a borrower (typically a hedge fund). SFTs are often facilitated and intermediated by broker- dealers and agent lenders (i.e., custodial banks or other institutions that lend out securities as agent on behalf of institutional firms). In return for the lent securities, the borrower transfers collateral, and a net rate payment is typically transferred to either the lender or the borrower that reflects the liquidity of the lent securities, as well as interest on any cash collateral.2 NSCC understands that 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. On a typical Business Day, The Depository Trust Company (“DTC”), an NSCC affiliate, processes deliver orders related to securities lending transactions on securities having a value of approximately $150 billion

Capital Efficiency Opportunities

The Basel III capital and leverage requirements, as implemented by the U.S. banking regulators, constrain the ability of agent lenders and brokers to intermediate and facilitate SFTs.4 NSCC believes central clearing of SFTs would be able to address these constraints, which may otherwise impair market participants’ ability to engage in SFTs.

For example, NSCC believes it is uniquely positioned to create balance sheet netting opportunities for market participants (i.e., the ability to offset cash payables and receivables

https://www.dtcc.com/-/media/Files/Downloads/legal/rule-filings/2021/NSCC/SR-NSCC-2021-010.pdf