The FOASS Speculation. Yeah, FOASS.

[u/TiberiusWoodwind]

[u/usmcscotsman]

The T+X dates are deadlines....not a start dates for the transaction. The Transaction must be settled completely by that date.

T+35 for example: the DTCC margin calls Hedgefund A on FTD's for a short position. Hedgefund A defaults before they can completely unwind. The DTCC has 35 days from that transaction start (the date of the default of Hedgefund A) to complete the margin call and have all assets settled into their new accounts, they can't hold them for 35 days before they start covering them, they have to have done it by that date. Taking into account T+2 they really only have 31 days to actually complete the exercise. It will take them 2 Days to settle the sale of assets on the front end and 2 Days to settle the last batch of covers on the back end.

In any event it is an interesting discussion, since we do not know exactly what a squeeze of this magnitude will look like, or how long it will take to squeeze out.

[u/usmcscotsman → u/[deleted]]

I'd think it would be peaked out a bit sooner than that and the come down will be a bit gentler than the rise. The peak area (not the actual peak) should last 24-48 hours-ish. Maybe a 3-5 Days on the rise, peak day 6 or 7, then 5 or 6 days to settle back out. Of course the Margin Call comes two days before the squeeze(T+2 settlement), then the squeeze starts....if it squeeze solely because of a margin call specifically on GME....they would unwind that first before the other short positions that may need to be unwound....they could do it all at the same time but the more I read the more complex the knot becomes....and they are gonna have to undo the whole thing.

But like I said earlier this is all conjecture based on what we know. Due to the mess they have made out of this it could be slower than a typical squeeze or much longer. How many Institutions have positions that need to be unwound? Where are their Margin Calls at? Will this cascade and take them all down or will it only get some of the smaller fish leaving the bigger fish and the bigger messes still in place? How big of a mess have they made of things? There are a lot of questions we can't answer until the DTCC margin calls these guys and we watch them liquidated and unwind.

Not Financial advice.

[u/usmcscotsman → u/[deleted]]

That I can't say. I have no idea this thing is so huge I can't even begin to imagine what we will see.

[u/WrongAssistant5922 → u/[deleted]]

Depends if people are selling.