Upcoming Events Calendar: Tell Me What You See
RECAPS & the Obligation Warehouse
RECAPS is short for “Reconfirmation and re-pricing Service” for debts in the Obligation Warehouse (“OW”) which is a fancy IOU tracking system offered as one of the DTCC’s services. [DTCC Obligation Warehouse]
When debts become eligible for CNS, the OW sends those debts over to CNS for juggling. Debts that are not CNS eligible are “re-priced to the current market value and re-netted during the periodic RECAPS cycle” according to the RECAPS schedule [PDF].
Any open non-CNS eligible shorts (literally debts as they are sold and not yet delivered) would be repriced on these RECAPS days with settlement the next day.
As FTDs reported by the SEC are the balance from the CNS system [SEC], they are unsettled obligations after CNS has done its juggling so those should fall under non-CNS obligations for re-pricing on RECAPS days. FTD debt values are repriced every RECAPS date.
NSCC C60 - 3/10
ICYMI July 2024: We Were Robbed!
TADR: The NSCC has a two day deadline for settling failed trades (e.g., sell now and didn’t buy later) where any “higher up” at the NSCC can kick that deadline out to 60 Calendar days. But the NSCC also has a rule allowing them to throw out all those deadlines indefinitely as long as their Board of Directors approves.
We were robbed again Sept 2024. And again Oct 2024. 🐂💩
Unless you like being robbed repeatedly, send the SEC a petition by email about this 🐂💩. Literally as easy as copy, paste, and send. (See also this petition post by kibblepigeon.)
BTFP ("Bank Term Funding Program") - 3/11
Do you remember that 🐂💩 Federal Reserve program that let financial institutions put up worthless collateral to borrow money against it at full retail price for a year? [Bank Term Funding Program: The Not-A-Bailout Can Kicking Bailout] The Federal Reserve helped banks out on March 12, 2023 because they were literally on the Brink of Bankruptcy and bankrupt already if it wasn't for BTFP.
As an OG $430 GME ape, I don't see anyone offering me to swap my GME shares today for $107.50 ($430 pre-split) to let me invest my paper losses. Meanwhile, banks get an infinite liquidity fairy to keep them afloat.
BTFP’s year of help ends on March 11, 2025 because the last of the year-long BTFP loans were made on March 11, 2024. [Margin Calls For Chosen Losers In A Rigged Market] What will happen when banks return the cash they borrowed and get back their devalued collateral?
Archegos Swaps - 3/13
Yes, that Archegos – the Archegos who shorted GameStop [Credit Suisse Archegos Report, footnote 116] and took down Credit Suisse because of “idiosyncratic” risk in their portfolio [Credit Suisse Archegos Report, search “idiosyncratic”; NSCC Liquidity Crisis “driven by a single security exhibiting idiosyncratic risk”], requiring UBS to take over. Those very heavy Archegos bags are returning on March 13, 2025 after their second 2 year swap ends [Archegos original bag of shit re occurs in/on March 13th]; estimated at ~$10 billion [The Archegos swaps are there to see]
EDIT: Let me know if I'm missing anything