Deep Capture Forums

OK I guess perhaps it may be a bit strong to label him as an NSS apologist.  He just thinks the NSS issue "is just way overblown"... 

Oh...  OK.  Thanks for clarifying, Bob.

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At October 19, 2009 10:33 PM ,   Anonymous said...

Mr. Robert Wenzel,

Just an anon concerned American citizen here who is very interested in the abusive NSS issue. Much of Byrne's theory about what's been going on in the financial markets the last several years makes a lot of sense to me (if you can get past the inherent doom & gloominess of it). Basically, if Byrne is correct, it would seem that organized crime has fiduciary control over a good portion of the financial market infrastructure in the USA. I'm not sure if I believe all of Bryne's claims, but I believe there has to be a great deal of truth to his ideas on abusive NSS. You have to admit that the NSS conspiracy theory has gained alot of traction since the market crumbled last year. It is unfortunate that there has not been a significant reigning in of the Market Makers' authority to wreak havoc since last year's crash.

But I digress to the point of this post... As I understand it, trading data is not shared outside DTCC. As I read you, you acknowledge that abusive NSS is a problem, but then in the next breath you seem intent to marginalize the extent of the problem. How is it that you know how big the abusive NSS problem is or is not? Please explain how you arrived at the conclusion that abusive NSS is a non-issue?

I hope I can trouble you to answer a couple of other related questions as well...
1. Why shouldn't everyone be required to locate what they intend to short sell?
2. Why shouldn't everyone be required to deliver what they sell?

You got what you say you wanted: a retort from Patrick Byrne. I, for one, eagerly await your return volley.

P.S. Abusive NSS = NSS as far as I can tell unless you can provide an honest answer to 1 & 2 above.

Thanks

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At October 21, 2009 12:12 PM ,   Robert Wenzel said...

"How is it that you know how big the abusive NSS problem is or is not? Please explain how you arrived at the conclusion that abusive NSS is a non-issue."

I didn't say it was a non-issue just way overblown. I have seen the Bear Stearns problems and Lehman collapse blamed on NSS. It was the pulling of credit. Players could have sold Bear and Lehman short from now to the end of time and that wouldn't have damaged the internal operations.

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I belive it makes sense to have exchanges where certs are required to be delivered when asked for.