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SEC to Force Rule Change to Pure Electronic Clearance and Settlement, Attacks Transfer Agents

Location: Blogs Bud Burrell - Front and Center    
Posted by:   bburrell 11/3/2006 9:25 AM

The story of this pending change is ominous to say the very least.  I guess seeing a Third World Country like India go to T+0 was the straw that finally broke them.

The potential implications of a pure electronic system without transparency for abuse is simply unmeasurable.  We can't get transparency now, and with a system they control, the institutional wholesale counterfeiting of our securities will literally explode.

Who wins here?  Follow the money.  The owners of central banks globally will have their backs broken  with the profits from the phony currency and securities transactions that will explode exponentially. 

You don't expand a system with the very features that have broken it. 

I say again, this conduct is TREASON.

If the GAO finds anything else, you can toss their reputation for intergrity in the nearest landfill, which is where they will belong if they don't stop this crap.

I say now that I am suspicious.  Both the SEC and the GAO report to Congress, and I find it hard to believe that the Congress will cite its own failure of oversight and corruption in any real, ungloved report.

To the GAO, prove me wrong, PLEASE!

Copyright ©2006 Bud Burrell
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Comments (28)
Re: SEC to Force Rule Change to Pure Electronic Clearance and Settlement, Attacks Transfer Agents By Howie on 11/3/2006 10:07 AM
....This is the most pressing issue of our time, IMHO....
Re: SEC to Force Rule Change to Pure Electronic Clearance and Settlement, Attacks Transfer Agents By john on 11/3/2006 10:07 AM
Can you explain why T+0 is bad? Wouldn't it make it hard to cheat if trades had to settle in real time?
Re: SEC to Force Rule Change to Pure Electronic Clearance and Settlement, Attacks Transfer Agents By bbhindyou on 11/5/2006 8:55 AM
We need a cartoon version the little cute retirement account share holder asking the big brokerage herd leaders "what do hedge funds eat for breakfast" the beatings received by the poor little retirement account share holder by the big brokerages for being impertinent through to the eventual encounter with the hedge fund .
Any preeschooler could get it then.
The dtcc is FORCING us into the river.
FIGHT.
Re: SEC to Force Rule Change to Pure Electronic Clearance and Settlement, Attacks Transfer Agents By cynabear on 11/6/2006 4:21 AM
after reading your blog it appears to me that if all the small investors left the market the hedgies could still make money scamming the system.....it seems pretty hopeless...
the courts are the only hope....imho
Re: SEC to Force Rule Change to Pure Electronic Clearance and Settlement, Attacks Transfer Agents By Freddo on 11/3/2006 10:10 AM
Bud, thanks for the email. How in the world can we stop this? What in the world are the regular joes supposed to do? It seems that nothing can be done, and the SEC is just going to do what the hell they want to do.....If YOU fear Congress will not do anything, I certainly don't feel any better about this country I so diligently served.

WE ARE LOSING OUR RIGHTS AS FAST AS LEGISLATION CAN GET IT ENACTED!!!

FC,CF
Re: SEC to Force Rule Change to Pure Electronic Clearance and Settlement, Attacks Transfer Agents By VIRAKILLER on 11/3/2006 10:11 AM
WE NEED TO HURT SOME OF THESE TRAITORS severly

AMERICA WE NEED YOU
Re: SEC to Force Rule Change to Pure Electronic Clearance and Settlement, Attacks Transfer Agents By bburrell on 11/3/2006 10:11 AM
T+0 would be good IF IT WERE GOING TO BE INFORCED!

There is no difference between T+0 and T+3, except you now add on 3 days to the Fail.

The answer is instantaneous DVP, NO NSS, and NO FAILS. This is the final step past T+0, which is only a stop on the path to the ultimate answer.
Re: SEC to Force Rule Change to Pure Electronic Clearance and Settlement, Attacks Transfer Agents By john on 11/3/2006 10:12 AM
Is this what you are referring to?

http://en.wikipedia.org/wiki/Straight_Through_Processing
Re: SEC to Force Rule Change to Pure Electronic Clearance and Settlement, Attacks Transfer Agents By bburrell on 11/3/2006 10:13 AM
STP is T+0, not implied yet to include Instantaneous DVP. Again, there must be a prohibition against the counterfeiting tied to naked short selling of all securities, not just stocks, and NO fails.
Re: SEC to Force Rule Change to Pure Electronic Clearance and Settlement, Attacks Transfer Agents By davidn on 11/3/2006 10:51 AM
We need to get rid of the concept of clearing brokerages and foreign depositories. Every brokerage, including foreign brokerages should participate directly in CNS.

I'd like to get rid of the DTC altogether and use the company transfer agent for custody, but in the interim, every brokerage should be required to be a participant directly at the DTC.

That would put every brokerage that wants to trade US stocks firmly under our jurisdiction with assets located here.

By eliminating the long daisy chains, it will become easy to audit to see that brokerages own enough stock to fill customer claims.

Claimsholders should know that there are shares on deposit to back their ownership.
Re: SEC to Force Rule Change to Pure Electronic Clearance and Settlement, Attacks Transfer Agents By ginger on 11/3/2006 10:52 AM
I wonder if Aaron Russo's new movie caused the SEC to act so fast. Seems they want the T+0 in place before too many people learn what's going on with the FED and the rest of Wall Street.

Re: SEC to Force Rule Change to Pure Electronic Clearance and Settlement, Attacks Transfer Agents By davidn on 11/3/2006 10:52 AM
I mentioned before that the DTCC annual report discloses that government debt also fails to settle.

Wouldn't that imply that the low interest rate on these conservative investments isn't factoring in the risk that I bought a phantom bond?

That report also clarifies that when the SEC or DTCC talk about dollar value of trades and dollar value of fails, they are INCLUDING DEBT transactions.

Why would they include debt, which dwarfs equity in dollar value unless they were trying to snow us with their statistics?
Re: SEC to Force Rule Change to Pure Electronic Clearance and Settlement, Attacks Transfer Agents By bburrell on 11/3/2006 10:55 AM
davidn,

Dr. Byrne addresses this anomaly about stocks vs bonds in his pieces, particularly on the extensions of Dark Side of the Looking Glass.

Robert O'Brien, following that lead, has also talked about the confusing character of the numbers.

They are trying bury us with their BS. I am reminded of the old line that statisitics don't lie, but liars do and use statistics.
Re: SEC to Force Rule Change to Pure Electronic Clearance and Settlement, Attacks Transfer Agents By dr. jim decosta on 11/3/2006 11:18 AM
My concern would be that nearly all trades would result in a "Delivery failure" and since there really are "Legitimate" delivery failures that Addendum C to the rules and regulations of the DTCC was designed to address via the "Automated Stock Borrow Program" or "SBP" then the illegitimate delivery failures will blend in seamlessly with the legitimate delivery failures.
Re: SEC to Force Rule Change to Pure Electronic Clearance and Settlement, Attacks Transfer Agents By bburrell on 11/3/2006 11:19 AM
Exactly. If the foundational rules of the system are not changed, the corruption doesn't do anything but expand exponentially, with even less risk of discovery. No transparency, no risk.

Re: SEC to Force Rule Change to Pure Electronic Clearance and Settlement, Attacks Transfer Agents By pegleg on 11/3/2006 3:35 PM
The final rape of the American market system is about to take place. History teaches us that internal corruption will cause any great society to collapse. Sad to say that this may be the harbinger of things to come.
Re: SEC to Force Rule Change to Pure Electronic Clearance and Settlement, Attacks Transfer Agents By sandyb on 11/3/2006 4:46 PM
Bud if you have certs in an existing company would this new rule force you to return them to a brokerage? Also is there a hardcopy of the rule somewhere? Thanks much.
Re: SEC to Force Rule Change to Pure Electronic Clearance and Settlement, Attacks Transfer Agents By bburrell on 11/3/2006 4:50 PM
If the Company you have an investment in uses certs by coordination with it Transfer Agent, you will be ultimately forced by the Company to turn in the certs NLT Jan 1, 2008, getting back a journal entry. That is in the announcement.

The 5th Amendment property rights are about to be abrogated like nothing in history. No one will know how many total shares are outstanding in any Company, since Counterfeit Longs created by Naked Short Selling will no longer be visible except when someone is tendered for, or orders a proxy.

This genuinely unbelievable.

Re: SEC to Force Rule Change to Pure Electronic Clearance and Settlement, Attacks Transfer Agents By Sound on 11/3/2006 5:30 PM
The issue of an electronic system with no paper trail and the resulting risk of fraud is the big issue with the voting method in the upcoming Mid-term elections. CNN is making this a front and center issue, right now.

In a recent article by Lou Dobbs he concludes – ‘When voters lose confidence in our elected representatives, we can vote the bums out. But what is the recourse if American voters lose confidence in our electoral system?’

Similarly, what is the recourse if investors lose confidence in the US markets? The issues are strinkingly similar and every bit as scarey.
Re: SEC to Force Rule Change to Pure Electronic Clearance and Settlement, Attacks Transfer Agents By bburrell on 11/3/2006 5:32 PM
Sound,

The recourse of investors from other countries is already known. We have gone from 90% of the World's IPO's being done here in 2000, to less than 10% of them this year. International companies are giving the US Markets a resounding vote of no confidence.

This will be a figure that will haunt our regulators. They can hear about it at their trials.

Re: SEC to Force Rule Change to Pure Electronic Clearance and Settlement, Attacks Transfer Agents By Mike ahmad on 11/4/2006 4:47 PM
It is very sad and ironic to say the least, that we have to go fight wars far away from our backyard, while we fail to recognize that the enemy we should be fighting is right there in our backyard.
Re: SEC to Force Rule Change to Pure Electronic Clearance and Settlement, Attacks Transfer Agents By bburrell on 11/4/2006 4:49 PM
"We have seen the enemy and he is us." Pogo.

Our worst enemies have always been right here. Politics is pabalum for the masses, something to keep their eyes OFF the BALL.

I can only speak for the last 42 years of my adult life.
Re: SEC to Force Rule Change to Pure Electronic Clearance and Settlement, Attacks Transfer Agents By bbhindyou on 11/4/2006 6:36 PM
Bud I gotta ask.
Where did you get educated not the stuff they teach in school the truth stuff.
I know where I received MY education in reality but sadly the source I was exposed to is long gone.The ability to question what we are told seems to be a dying art.Your work is appreciated and it's good to see someone who was clearly influenced by the skilled art of others.Please continue to produce such quality work.
Re: SEC to Force Rule Change to Pure Electronic Clearance and Settlement, Attacks Transfer Agents By bburrell on 11/4/2006 6:49 PM
A terrific secondary education, 4 years at West Point, 5+ years in the Army, graduate studies at two schools, continuing education, an extremely diverse work experience, licenses including Reg Rep Series 7, Registered Options Principal (77), Registered Interest Rate Options Principal, Commodities Registration, Series 63, and Series 3 NASD Principal. Two languages, math through multiple regression analysis, General Engineering undergrad, MBA studies, three Graduate Fellowship Grants (neither used), and more. One of my best friends said my CV was almost technically unreadable. I have worked on over 200 technology and development company transactions in 8 countries. I executed the compilation of the Shearson Global Equity Return Indices, the first Mortgage Backed Securities AI expert system emulation for the first SUN LAN on Wall Street and a lot more, including selling clearing and execution services institutionally.

I once told a lawyer in this matter, known to all, that if I had not had every single job I had in the industry on top of my educational background, I would never have gotten the whole picture here. My greatest difficulty here was I am too honest to have believed what I saw for over three years. I simply couldn't imagine it. Big mistake. I am past that now.

I don't know how the scum here sleep at night. At least my conscience is clear. I simply have to manage my anger now. Participating in the firing squads that will come is a good plan to stay on track emotionally through the end of this financial holocaust. Treason is death for the guilty if there is any justice.
Re: SEC to Force Rule Change to Pure Electronic Clearance and Settlement, Attacks Transfer Agents By Don on 11/5/2006 7:25 AM
Can you give me an official link from the SEC on this subject? I can't find it on the SEC
Web Site.
Re: SEC to Force Rule Change to Pure Electronic Clearance and Settlement, Attacks Transfer Agents By bbhindyou on 11/5/2006 7:26 AM
Bud I can't tell you how pleasing it is to have someone of your educational back round fighting this battle.
The main party line seems to be that we are all just too dumb and uneducated to understand the market system.
They can't say that to you or about you.
I just love that.
I don't have any experience with the institutions of learning that you have had, I only have experience with having something the people in power want and the ways they have tried to get what is mine .
The education I received is more like that of the elephants child in Kipling.
The boa has my undying gratitude and I have learned NOT to be freindly to crocodiles, we now know what they eat for breakfast.
I have decided the best revenge is living well and telling all who will listen the fate that awaits them if they go into the river.
I hope the gator starves.
This newest trick the gators have come up with ,making paper certs 'obsolete' seems to be forcing us all into the river together.
The gators had me once but with the help of a friend I survived.
Going into the water this time at least there will be many friends such as yourself in there with me.
I really don't want to go into the river I want to keep my certs in the paper form I paid to have them put in and in MY possesion and I want to know my property is mine.
The way the paper cert is being persecuted it must be the thing they fear the most.
I won't surrender mine willingly.
I have more on order I wonder if I will get them.
Monday morning I will try to order more and see where it goes.
My entire life savings and all retirement accounts are in process of being turned into REAL certs in my name in my possesion.
Seems they are trying to put a stop to that.
Not without a fight.
I have less than 300k total but even my chump change will not be allowed to escape .
Everyone order certs and refuse to surrender YOUR property.
They will have to push me cause I won't jump.
See you in the water if this can't be stopped.Will any of us see the other side?
Re: SEC to Force Rule Change to Pure Electronic Clearance and Settlement, Attacks Transfer Agents By bbhindyou on 11/5/2006 7:26 AM
Please change boa to python in my previous post I don't know what I was thinking.
Thats gratitude for you .I can't even get my metaphors straight.If I'm going to call them a snake at all it had better be the right snake!
THANK YOU
Re: SEC to Force Rule Change to Pure Electronic Clearance and Settlement, Attacks Transfer Agents By bburrell on 11/5/2006 7:27 AM
Don,

See my next Blog post, the announcement came from the DTCC with SEC consent apparent.

B.
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