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We have approximately $4.6bn in cash now now that the ATM has closed again.
The math behind my figure
30 day t bill = 4.66% yield
$4,600,000,000 * 0.0466 = $214,360,000
$214,360,000 / 365 = $587,287.67
Now - with positive EPS (should be in all periods) we are set up for some positive cash flow that goes directly in our coffers.
Let’s go GameStop!
PS I won’t be mad when RC hits the ATM again - we’re rising and shorts can’t do anything about it!!!
The hype is real!!!! Break the top 100 soon? 🚀🚀🚀🚀
Hello apes. Happy Monday.
As of today we have hit the 14% threshold from my first post.
If my theory is correct we will see an ATM complete update soon, unless there is something else going on. I also could be completely wrong and connecting dots that don’t exist.
So far I think Gamestop was expecting the wild volume we saw on Friday and as of now we are past the threshold.
My last update I said they might have been expecting more volume due to the ATM being a giant chunk of the total volume at the time.
We will see where this goes.
If you want to read more there’s my original post and an update on my profile.
Have a great week apes! Love y’all.
-🦧
TADR: Clearing Agency Rule 22 (NSCC) can kicked🦵🥫🗑️ a deadline requiring shorts to close out Roaring Kitty's 4M GME purchase. Those naked short positions are now held and guaranteed by the NSCC, a SIFMU which means backed by America and the American public.
If you don't like this 🐂💩 because the NSCC rug pulled a short squeeze or as a bag holding American taxpayer, petition to change the rules (see below) by sending the SEC an emailPETITION TO ENFORCE RULES! NOT WAIVERS! (template included in that pinned post).
Why 🟢 GME 📈 9/20
On June 13, 2024, Roaring Kitty purchased 4M shares of GME [SuperStonk YOLO Update] which requires T+35 Close Out per Rule 204 (17 CFR § 242.204) applicable to participants of a registered Clearing agency (e.g., Citadel Clearing and Citadel Securities being participants of the NSCC with Citadel Securities the Designated Market Maker for GME as of 2020) with Rule 204(a)(2) specifying the T+35 requirement which should apply to participants:
(a) A participant of a registered clearing agency must deliver securities to a registered clearing agency for clearance and settlement on a long or short sale in any equity security by settlement date, or if a participant of a registered clearing agency has a fail to deliver position at a registered clearing agency in any equity security for a long or short sale transaction in that equity security, the participant shall, by no later than the beginning of regular trading hours on the settlement day following the settlement date, immediately close out its fail to deliver position by borrowing or purchasing securities of like kind and quantity; Provided, however:
Rule 204 is why there were a lot of expectations for a nice price run mid-July (specifically, July 17-18th, 2024) as a result of Roaring Kitty’s 4M+ GME share purchase on or around June 13th. 4M GME shares is a lot of shares as that’s about 1% of the total outstanding shares of GME; which means in economics terms RK moved the demand curve by buying 1 out of every 100 shares outstanding (more impressive than buying 1% of the float). But contrary to basic economic laws of supply and demand, GME barely budged instead generally staying below Roaring Kitty's ~$26 cost basis. [SuperStonk]
At the end of the T+35 close out period (i.e., July 18th), the SEC allows a participant to satisfy the close out requirement with an irrevocable volume weighted average price (VWAP) order received by the beginning of trading hours on the applicable close out date, 7/18, that is not executed until the final execution price is determined after the close of regular trading hours.
However, the participant may satisfy the close-out requirement to purchase securities of like kind and quantity with a VWAP order provided the order to purchase the equity security on a VWAP basis is irrevocable and received by no later than the beginning of regular trading hours on the applicable close-out date; and the final execution price of any such transaction is not determined until after the close of regular trading hours when the VWAP value is calculated and the execution is on an agency basis. [SEC]
In hindsight, we can see the shorts hammered the price down on the 7/18 close out day (i.e., “the thirty-fifth consecutive calendar day following the trade date”) to lower the VWAP final execution priceSuperStonk] When the fines are merely a cost of doing business, it seems quite reasonable for other market participants (including market makers) to do the same.
Just because VWAP set the price, doesn’t mean VWAP found shares to buy at that price… So what happens if the market maker (e.g., Citadel Securities) doesn’t fully deliver on RK’s trade at the end of its T+35 close out period? Well, the registered Clearing agency takes over and all stock trades are cleared by the National Securities Clearing Corporation (NSCC) [Investopedia], a Systemically important financial market utility (SIFMU), which has a separate set of rules and procedures as found by Lenarius, a very wrinkled ape.
According to the NSCC Disclosure Framework for Covered Clearing Agencies and Financial Market Infrastructures, the NSCC completes settlement of guaranteed transactions for Member’s on a two day settlement cycle from the date of insolvency (“DOI”).
NSCC has a two-day (T2) settlement cycle for Member defaults
As a central counterparty, NSCC’s liquidity needs are driven by the requirement to complete end-of day money settlement, on an ongoing basis, in the event of a failure of a Member. As a cash market CCP, if a Member defaults, NSCC will need to complete settlement of guaranteed transactions on the failing Member’s behalf from the date of insolvency (referred to as “DOI”) through the remainder of the two-day settlement cycle. As such, NSCC measures the sufficiency of its qualifying liquid resources through daily liquidity studies across a range of scenarios, including amounts needed over the settlement cycle in the event that the Member or Member’s affiliated family with the largest aggregate liquidity exposure becomes insolvent (that is, on a Cover One standard). NSCC settles only in U.S. dollars.
Which means once the NSCC declares the DOI for a Member’s trade, the NSCC rules and procedures dictate settlement occurs over two days. We don’t know exactly when the NSCC declared DOI, but it won’t be declared until after the VWAP order fails after close of business on 7/19; as predicted by Lenariuswhich makes sense. However, a timely global computer outage on 7/19 likely gave the defaulting Member a good excuse for Hwang-ing up on the NSCC so it's quite likely the NSCC gave the defaulting Member an extra day until close of regular trading hours Monday 7/22; thus placing the 2 Day NSCC Settlement window at either July 22-23 or, more likely, July 23-24 with a grace day for the CrowdStrike outage.
Either way you look at it though, GME stayed under RK’s purchase price during the NSCC’s two day settlement period indicating NSCC didn’t settle RK’s purchase by acquiring shares from the market. How can the NSCC ignore their own Rules & Procedures?
NSCC Rule 22 Suspension of Rules [NSCC Rules] allows the NSCC to extend or waive any of the requirements of their Rules, Procedures, or regulations as long as a “higher up” (i.e., Board of Directors, Chairman of the Board, President, General Counsel, or anyone with a rank of Managing Director or higher) decides a “waiver or suspension is necessary or expedient”. An extension or waiver can even last longer than 60 calendar days if approved by the Board of Directors. The only ones who will know of this extension are those in the Club (i.e., any Member, Mutual Fund/Insurance Services Member, Municipal Comparison Only Member, Insurance Carrier/Retirement Services Member, TPA Member, TPP Member, Investment Manager/Agent Member, Fund Member, Data Services Only Member or AIP Member); a Club that we’re definitely not in.
Friday Sept 20, 2024 was the last of 60 calendar days (C60) from DOI on July 22 where any Managing Director (or higher) at the NSCC can waive or extend the NSCC’s own Rules and timelines per NSCC’s Rule 22. As with all bureaucracies, the NSCC waited until the last minute to acquire shares today (Sept. 20, 2024); which explains why we see nice green action on GME today.
We didn't see a bigger squeeze Friday 9/20 because closing out Roaring Kitty's 4M GME purchase would've been disorderly to the market so the NSCC’s Board of Directors simply approved a waiver or extension beyond C60 per Rule 22. Why? Because Rule NSCC Rule 18 which contains a provision that “if, in the opinion of the Corporation, the close out of a position in a specific security would create a disorderly market in that security, then the completion of such close-out shall be in the discretion of the Corporation”. (A squeeze is definitely disorderly so the NSCC used their discretion to not complete close-out..)
NSCC Rule 18: Can't let disorder get in the way of Closing Out
- If you're looking for a squeeze, then the NSCC Rule for extensions and waivers probably sounds like 🐂💩to you.
- If you're an American taxpayer backing the NSCC which is now holding the bags on Roaring Kitty's 4M GME purchase, then this probably also sounds like 🐂💩to you.
You can do something about this by petitioning the SEC for rulemaking to get rid of these 🐂💩 rules for throwing out rules, not closing out trades, and make sure that those who break our financial system pay for the damage caused.
SUPER EASY to send a petition, just send the SEC an email PETITION TO ENFORCE RULES! NOT WAIVERS! (template included in that pinned post). Many apes already have.
Pepperidge Farm remembers how the OCC Proposed Reducing Margin Requirements To Prevent A Cascade of Clearing Member Failures (SR-OCC-2024-001). This proposal is now DEAD. REJECTED. WITHDRAWN. [SEC]
Marge, ☎️
CONGRATULATIONS TO ALL APES FIGHTING THIS
Over 2500+ of you commented the first time around [SuperStonk] with the final tally now at well over 4000 comments! [SEC]
🤝 WELL DONE FELLOW SIMIANS! We're on a Regulatory Kong Roll as apes also won the Beneficial Ownership Reporting BS!
Extra Kudos to: Kibble Pigeon, Dismal Jellyfish, Real Micah Live, and JFWooten
NEXT BATTLE: NSCC Rule 22
The NSCC (Clearing Agency for Stonks) has a Rule which allows them to throw out their Rulebook which means that deadlines to deliver shares can be set aside instead of being Closed Out in our markets. [SuperStonk: I Know What You Did Last Friday: Why 🟢 GME 📈 9/20] Basically, Wall St sells IOUs they can never deliver on for our publicly backed Clearing Agencies to guarantee. Our Clearing Agencies won't Close Out those IOUs because doing so would create a "disorderly market" (e.g., a Squeeze).
Petition To Change That 🐂💩 by sending the SEC an email (template inside). Kibble's got a post on this as well.
Guten Morgen to this global band of Apes! 👋🦍
What a start to the week!
The day had some exciting price action, easily breaking through the $22 barrier that the SHFs fought hard against on Friday. Of course, the big news came in after-hours, when GameStop announced that the share offering was complete. They now have over $4.6 billion in the warchest, an increase that hardly touched the share price.
The hedgies are truly fucked.
Today is Tuesday, September 24th, and you know what that means! Join other apes around the world to watch infrequent updates from the German markets!
🚀 Buckle Up! 🚀
- 🟩 120 minutes in: $22.39 / 20,13 € (volume: 16573)
- 🟩 115 minutes in: $22.37 / 20,12 € (volume: 15835)
- 🟩 110 minutes in: $22.37 / 20,12 € (volume: 15338)
- 🟩 105 minutes in: $22.34 / 20,09 € (volume: 15229)
- 🟥 100 minutes in: $22.33 / 20,08 € (volume: 15013)
- ⬜ 95 minutes in: $22.36 / 20,11 € (volume: 14713)
- 🟥 90 minutes in: $22.36 / 20,11 € (volume: 14165)
- 🟩 85 minutes in: $22.45 / 20,19 € (volume: 13925)
- 🟩 80 minutes in: $22.44 / 20,18 € (volume: 12853)
- 🟩 75 minutes in: $22.43 / 20,17 € (volume: 11673)
- 🟥 70 minutes in: $22.37 / 20,12 € (volume: 11616)
- 🟥 65 minutes in: $22.39 / 20,14 € (volume: 11379)
- 🟥 60 minutes in: $22.40 / 20,15 € (volume: 10963)
- 🟩 55 minutes in: $22.44 / 20,18 € (volume: 8506)
- 🟥 50 minutes in: $22.42 / 20,17 € (volume: 8125)
- ⬜ 45 minutes in: $22.43 / 20,17 € (volume: 8102)
- 🟩 40 minutes in: $22.43 / 20,17 € (volume: 8035)
- 🟥 35 minutes in: $22.42 / 20,16 € (volume: 7590)
- 🟩 30 minutes in: $22.43 / 20,18 € (volume: 7502)
- 🟥 25 minutes in: $22.32 / 20,07 € (volume: 6707)
- 🟥 20 minutes in: $22.43 / 20,17 € (volume: 5369)
- 🟩 15 minutes in: $22.46 / 20,20 € (volume: 4848)
- 🟥 10 minutes in: $22.42 / 20,16 € (volume: 4749)
- 🟩 5 minutes in: $22.46 / 20,20 € (volume: 3169)
- 🟩 0 minutes in: $22.44 / 20,18 € (volume: 555)
- 🟩 US close price: $22.31 / 20,06 € ($22.60 / 20,33 € after-hours)
- US market volume: 13.30 million shares
Link to previous Diamantenhände post
FAQ: I'm capturing current price and volume data from German exchanges and converting to USD. Today's euro -> USD conversion ratio is 1.1119. I programmed a tool that assists me in fetching this data and updating the post. If you'd like to check current prices directly, you can check Lang & Schwarz or TradeGate
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Keep in mind the negative numbers are in ( ).
So ( 16.2) = -16.2