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A Simple Explanation of How Shares Move Around the Securities Settlement System

106 点作者 rpbertp13超过 8 年前

3 条评论

stygiansonic超过 8 年前
In the US, the role of the central securities depository is done by the DTCC.[0] But the registered holder (nominee) of the DTCC is a separate legal entity known as Cede &amp; Co. [1] (I recommend reading Matt Levine&#x27;s article for further discourse)<p>So basically, the concept of ownership of a financial asset (which is itself, an abstraction) is further abstracted, for the purpose of making the system more efficient.<p>Fun fact: After Hurricane Sandy in 2012, the DTCC had to recover&#x2F;restore many damaged paper certificates after their securities vault was flooded. I don&#x27;t know whether these had any electronic entries but I assume they did. But the physical certificates still needed to be retained.[2]<p>If you&#x27;re interested in this sort of market structure&#x2F;market participant discussion, I&#x27;d recommend the textbook <i>Trading and Exchanges: Market Microstructure for Practitioners</i>, by Larry Harris.<p>0. <a href="https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Depository_Trust_%26_Clearing_Corporation" rel="nofollow">https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Depository_Trust_%26_Clearing_...</a><p>1. <a href="https:&#x2F;&#x2F;www.bloomberg.com&#x2F;view&#x2F;articles&#x2F;2015-07-14&#x2F;banks-forgot-who-was-supposed-to-own-dell-shares" rel="nofollow">https:&#x2F;&#x2F;www.bloomberg.com&#x2F;view&#x2F;articles&#x2F;2015-07-14&#x2F;banks-for...</a><p>2. <a href="http:&#x2F;&#x2F;www.dtcc.com&#x2F;annuals&#x2F;2013&#x2F;superstorm-sandy-recovery&#x2F;index.php" rel="nofollow">http:&#x2F;&#x2F;www.dtcc.com&#x2F;annuals&#x2F;2013&#x2F;superstorm-sandy-recovery&#x2F;i...</a>
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raincom超过 8 年前
Both companies and investors who have been ruined by &quot;naked shorting&quot; (a gray area despite regulation SHO) know more about the shadow world of settlement.<p>If you are a retail short, SHO regulations apply to you. If you are a shadowy short running operations in Bahamas, but funded by shadow partners of clearing house, you can make a killing.<p><a href="http:&#x2F;&#x2F;www.economist.com&#x2F;news&#x2F;finance-economics&#x2F;21678146-latest-chapter-companys-battle-show-it-was-victim-abusive" rel="nofollow">http:&#x2F;&#x2F;www.economist.com&#x2F;news&#x2F;finance-economics&#x2F;21678146-lat...</a><p><a href="http:&#x2F;&#x2F;cdn.static-economist.com&#x2F;sites&#x2F;default&#x2F;files&#x2F;pdfs&#x2F;EN_Overstock_docs.zip" rel="nofollow">http:&#x2F;&#x2F;cdn.static-economist.com&#x2F;sites&#x2F;default&#x2F;files&#x2F;pdfs&#x2F;EN_...</a> <a href="http:&#x2F;&#x2F;cdn.static-economist.com&#x2F;sites&#x2F;default&#x2F;files&#x2F;pdfs&#x2F;Fifth_Amended_Complaint_%28Redacted%29_Redacted.pdf" rel="nofollow">http:&#x2F;&#x2F;cdn.static-economist.com&#x2F;sites&#x2F;default&#x2F;files&#x2F;pdfs&#x2F;Fif...</a>
ry4n413超过 8 年前
detailed diagram I have... <a href="http:&#x2F;&#x2F;www.evernote.com&#x2F;l&#x2F;AUktHsZP9-xE754ZOPn2Kv-OkJs74RAb7KE&#x2F;" rel="nofollow">http:&#x2F;&#x2F;www.evernote.com&#x2F;l&#x2F;AUktHsZP9-xE754ZOPn2Kv-OkJs74RAb7K...</a>