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This Post is related to all Europoors which have been held hostage with their GS2C Ticker Gamestop Class A Shares. We will take a view on how the european clearing system is working and how Cross-Border Transfers at the right time can short brokerages liquidity. All of the upcoming information is for entertainment only. None of this is financial advice. I’m not a professional market analyst. Any given information could be wrong or misleading. Don’t take any of it as an advice. I’m a professional retard who eats mayo all day. Any of the given information is hypothetical and will not cause any problems for the brokers. Unless the sold securities aren’t backed and stated as an IOU..
While writing my older post about how european Apes can transfer their hostage GS2C Shares without cost through the different clearinghouses (mostly Clearstream to DTC) via Cross-Broder-Transfers (XBT) my pig wizzled. I realized that thanks to the theory of Opex Cycles (Check Gherk’s Wyckoff DD) we now have all the information needed to drain liquidity out of brokers. But first let me give you a quick introduction of Opex using Reddit user Gherkinit material.
So basically without having any wrinkles, Opex Cycles are recurring cycles of GME price pumping. Gherkinit followed the historical movement of GME and did some crazy graphics with the chart half of the ape population cannot understand. So I’ll leave this screenshot from his Wyckoff post here to give you a clue about what’s going on. As you can see the price of GME is following a trendline. Every three months the price pumps. For more information please read the post I mentioned above.
While Ameriapes hold their shares directly to the streetname of the Depository and Trust Company (DTC), Europoors mostly buy their shares with the Clearstream Agency (ex Cedel). That’s why there are different Tickers as GS2C in common use. It’s because of Clearing structure.
As 1 Share of GME(DTC) equals 1 Share of GS2C (CEDEL) it’s obvious that the europoor version of GME is just…a poor version of the original share. This is getting easy. 1 Share hold with the Clearstream Agent is nothing else than 1 Share security backed with the DTC. To be clear: One GS2C Share is backed with one share GME at the DTC.
In general brokers hold securites within a single clearing agent. For Gamestop as we know it would be the DTC. Since our beloved broker Interactive Brokers seems to be the only one in europe actually providing transfers via Cross Border Delivery to receive the opportunity of direct registering the Shares with Computershare, I wan’t to take the minute and explain normal streetname exchanges between brokers and the difference with XBT. In a standart Streetname exchange the backed security is not touched. Brokers which hold the security with the same clearing agent just receive the shares as you would give your best friend a chewing gum. You just deliver it right in the hands. Cross Border Transfer of Securities In a Cross Border process (GS2C->GME) the outgoing brokerage initiates the return of the Security from Clearstream to the DTC. After the DTC is backed with the share your Broker B will book the share to your Account.
So what if your Europoor Brokers lent the share you bought to let’s say a Hedgefuck who shorted the hell out of it and is unable to return the security creating a FTD and now you want to transfer it from Clearstream to the DTC? Of course they need to buyback the security for this transfer. In my opinion, this is the reason europoor brokers are turning to Karen after we mention Cross-Border Transfers. Since european settlement law is T+3 the transfer should engage within a week or less. So european brokers have three weekdays to buyback the security and initiate the transfer to the DTC.
What if the price of the security is higher than your costbase and they are forced to buy the security for the transfer? They have to pay the difference
Now we have the OPEX data which exactly tells us when the price will pump, and we have a quick view about how the clearing between the securites works. If we combine these two we can force the brokers to buyback securities at a higher price draining them liquidity. So here it is:
All of the above mentioned will never be any problem for brokers if they hold the security lawfully and truthfully. I mean, who the f**k would ever think about selling IOUs kicking the can down the road against Gamestop Investors? Absolutely retarded idea. TL;DR: Hyphothetically we can short brokers using their own IOUs against them. Buy banana when price low, transfer to the DTC when price high. brokers forced to buyback security for delivering draining them liquidity. brokers fuck, hedgies fuck, ape happy. Reffering: I cannot link subreddits or users for any reason. The used Opex picture is used from u / gherkinit and his Wyckoff DD. Check it out. submitted by /u/SirImmken92 to r/Spielstopp |