DTCC is a holding company established in 1999 to combine The Depository Trust Company (DTC) and National Securities Clearing Corporation (NSCC). (click title of entry above)
DTCC of U.S. to Buy LCH.Clearnet for EU739 Million (Update1) (click here)
By Nandini Sukumar
Oct. 22 (Bloomberg) -- Depository Trust and Clearing Corp. of the U.S. agreed to buy London's LCH.Clearnet Group Ltd. for 739 million euros ($951 million) to form the world's largest processor of trades in stocks, bonds, currencies and derivatives.
DTCC will buy all of privately held LCH.Clearnet for as much as 10 euros a share, the companies said in an e-mailed statement today. Euroclear, LCH.Clearnet's largest shareholder, with 15.8 percent, has agreed to support the merger ``in principle.''
LCH.Clearnet has come under pressure as some of its largest customers, such as Intercontinental Exchange Inc., Europe's largest energy market, and NYSE Euronext's Liffe derivatives market, prepare to defect. The company has also faced competition from new rivals in Europe, including DTCC. The combination comes as regulators seek a central clearing house for credit-default swaps after unprecedented volatility in markets worldwide....
One of the contributions to the collapse of the markets is a coveted past time "Naked Short Selling" - Here is a Wiki Short Course (click here)
...In the United States, naked short selling is covered by various SEC regulations which, as of September 2008, prohibit the practice.[2] In 2005, "Regulation SHO" was enacted to curb the practice, requiring that broker-dealers have grounds to believe that shares will be available for a given stock transaction, and requiring that delivery take place within a limited time period.[3][4] As part of its response to the crisis in the North American markets in 2008, the SEC issued a temporary order restricting fails to deliver in the shares of 19 financial firms deemed systemically important.[5] Effective September 18, 2008, amid claims that aggressive short selling had played a role in the failure of financial giant Lehman Brothers, the SEC made permanent and expanded the rules to remove exceptions and to cover all companies.[6][7]
Some commentators have contended that despite regulations, naked shorting is widespread and that the SEC regulations are poorly enforced, although the SEC has denied these claims. However, the SEC and others have also defended the practice in limited form as beneficial for market liquidity.[3] Its critics have contended that the practice is susceptible to abuse, can be damaging to targeted companies struggling to raise capital, and has led to numerous bankruptcies....
It's relative The Short (click here)
In finance, short selling or "shorting" is the practice of selling a financial instrument that the seller does not own at the time of the sale....
THE PROBLEM IS THIS. The Washington Republican Elite want people to believe that deregulation is the answer to all problems financial.
"W"RONG.
Deregulation CONTRIBUTES to global instability and abuses in the Financial Sector. Part of this 'movement' to deregulate at all costs, is based in frank greed !
We need to return markets to 'reasonable' growth rather than this 'Poker Game' that goes on today. I don't care if Wall Street is hitting its highest "Joy Button" since the markets exceeded $1000. It is causing grotesque problems in the lives of people and potentials of fiscal collapse of nations.
We need to stop providing impetus to instability. We need leadership with a steady hand and basic decency. In the case of DTCC, they will state they are not a regulatory agency and can't be responsible for issues relating to its 'clearing-house' activities. I basically find that an evasion of responsiblity by the courts, however, if institutions such as DTCC require regulation and guidance and complain they are not to blame because of the lack it, then let's provide exactly that and plenty of it ! We need a clear Democratic Majority in both houses and in the Executive Branch to bring this mess under control. The Republicans will never exhibit enough dicipline to do it themselves and the world is their osyter REGARDLESS of the state of the country or countries involved.
ENOUGH !!!
...DTCC subsidiaries clear and settle trades. (click here) Short selling and naked short selling are trading strategies regulated by the marketplaces and the SEC. DTCC is involved after a trade is completed at the marketplace. DTCC does not have regulatory powers or regulatory responsibility over trading or to forcing the completion of trades that fail. As the SEC has stated, fails can be the result of a wide range of factors.
The SEC has also pointed out that their efforts, in promulgating Reg SHO to effectively safeguard extended fails associated with short selling or naked short selling have been successful in achieving their goal....
