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TheFirm

09/02/23 8:42 AM

#6070 RE: FairMarketsNow #6067

Let me try to explain this one more time. It's obvious that none of you have experience or knowledge of how DTC works. To be a DTC member you have to fill out a form and get approval. You have requirements on your capital set by the SEC AND DTC for your membership. What this does is allow a clearing DTC member to sell stock for one if its correspondents (FINRA B/Ds) who also have a distinguished identity. At the end of the trading day, the stock sold by FINRA firm 'A' is processed and matched with the buying firm "B". How do these trades settle the cash and shifting of stock? The Clearing firms of A/B also have distinguished identifiers and they submit to DTC and both recognize the trade and the stock is taken out in the back office out of one firm and put into the account of the other clearing firm on behalf of A/B... with me still? Ok. Now if you are a DTC member the size of Goldman or JP Morgan, you have extraordinary amounts of capital at your disposal. For smaller clearing firms, not so much. But during turbulent amounts of time, DTC can require members to 'wire into' your DTC clearing account significant capital to cover a series of trades or market volatility. Usually, they will hold it for 3 days and then you have two choices 1) leave it at DTC (which most big boys do) or 2) Have it wired back to you. When trading OTC/Volatile stocks, DTC has a market volatility scale and capital limits on stocks depending on the price, 30 day ADV, size of trade. They also set limits on the smaller firms on the TOTAL capital they can use for trading for that day WITHOUT having to send more $$ into their DTC account. If you go over that amount you will get a demand notice and must immediately (usually by start of trading next day) wire in that amount and it stays at DTC for 3-5 days and once again, you can leave it there or have it sent back out. With this stock, an enormous amount (for a small firm) was traded and they went over their daily capital by about $2.3 million. However DTC decided that instead of wiring the money back in a few days , they wanted to keep this as additional capital long term in the DTC account. Alpine appealed this, they sent to SEC, they both filed their legal briefs and your hero HAM posts the October notice about twice a week to keep your tails wagging. While waiting for the SEC to make a judgement on whether DTC should keep that extra $2.3 million (that BTW still counts as your net capital) as a safe guard, DTC decided 90 days later to just wire the money back ( i am not privy to the wire thus i can't provide a link nor wire instructions). However this is exactly what has happened and an automated Venessa Countrymen letter comes out the same way month aft month for over a year...wouldn't it be better for somebody to get a status update from Pacer on this case? its over, the point is moot unless it happens again to Alpine. That will be your last free lesson from me. Enjoy labor day and do your due Dillie!