DD Support Board and Research Team

[jbsliverer]

Sometimes people forget what the DTCC is and the fact that they are a business that only provides a service and in business to make profit for that service. They actually do that service quite well. Their function is not to oversee the broker, the company that issues shares, the investor, the TA, etc, their function is to apply a service for means of recording and documenting and allowing a place for securities for a buyer to a seller or vise versa.

They don't issue shares, they don't have regulatory power over the broker or a company, or in charge of teaching the investor how to trade. DTCC provides a service for that system of the marketplace to work and like any other business, they need to make a profit for that service. It is good business to cut a service to anything that does not create enough profit to cover the expense and risks. That is the only reason that they need to have.

If a bs pink is creating to much expense and risk, it is financially responsible for the DTCC to cut them out of the service. What any investor might want to look at is the fact that the DTCC found that a particular company was a big risk and not buy that company or sell it quick. At that point, who cares what in specifically the risks were, but just the fact that now that investment is at such a great risk that it is unfeasible to look to it as a profitable investment or trade.

It might be nice for the DTCC to list all the reasons for that risk, but they are not in any way required to do so. That is not their service and not their business and is for other entities to pick up that responsibility.

This is a good chart by the DTCC and simplifies a process and their service. The link for the pdf included is some good basic information and one view to what actually they are doing and the service that that they provide.

http://www.dtcc.com/downloads/about/Broker_to_Broker_Trade.pdf