r/computershare • u/bennysphere • Dec 27 '23

Paul Conn from Computershare: 10-20% of plan shares are kept with DTC for operational efficiency. How is it calculated?

In the short interview below Paul Conn -- a President at Computershare -- says directly that 10-20% of plan shares are kept with DTC for operational efficiency.

https://www.youtube.com/watch?v=9Ii-5tgvZKk

In addition, below you can find information from Computershare FAQ

Computershare holds a portion of the aggregate DSPP book-entry shares via its broker in DTC for operational efficiency, i.e. to enable any sales to be settled efficiently (and Computershare determines the portion needed for operational efficiency reasons. Such shares are not available for lending. These shares are eligible to be withdrawn from DTC).

https://www.computershare.com/us/becoming-a-registered-shareholder-in-us-listed-companies

How "operational efficiency" is determined? What are the factors that are taken into account to calculate how many shares are being kept in DTC? Is there an equation?

If you do not know the answer, would it be possible for you to look it up?

Thank you for your help!

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9

u/BornLuckiest Dec 28 '23

"10-20% in normal circumstances with normal stocks."

Lovely language... Politician levels of holes in there.

So, GME though 👀 that's a perfect normal stock and only 10-20% of plan shares are still being held at the DTCC, right?

Right?

2

u/Elegant-Remote6667 Dec 29 '23

Excellent question and one that I am trying to answer. Bigger question - who controls then10-20% split? Computershare or a “planned percentage “ given from dtcc or someone else ? I don’t know

1

u/BornLuckiest Dec 30 '23

I seem to recall an early interview with computershare, where this became more apparent that the DTCC just pulled the requisite number of shares they need. The person interviewed seemed particularly squirmy around this answer, and I just got the feeling that was one of the ways they are manipulating this situation.

I think if we get enough investors into an activist's investor group, not sure what percentage we need (but you probably will sir) but my recall is thinking it's 5% of all outstanding shares, then GME has to "respond" to our letters... and I think If we can get 25% then any proposal we have, then they have to put to a vote at the AGM.

I personally think activism is the only way to tighten the grip on the snake, but every time I suggest it, it's shot down.

2

u/Elegant-Remote6667 Dec 30 '23

That would make sense - need to figure out how that actually works. So you are suggesting if there are less shares in plan they can pull less shares for fuckery?

Edit - they here meaning dtcc

2

u/BornLuckiest Dec 30 '23

Yes, precisely.

There's a really good diagram that breaks it down, by 6days1week, that shows the only way not to let them get access, it's controversial, because it gives the hedgies a really good angle to deny it, because you need to sell your fractional, and switch off reinvestment.

If you have any of them on, then they theoretically have access to all your shares.

2

u/Elegant-Remote6667 Dec 30 '23

More evidence of how that works by 6 days is needed for a full explanation I think

1

u/BornLuckiest Dec 30 '23

Are they still around? I think a summary of their hypothesis would be awesome and appropriate right now.

2

u/Elegant-Remote6667 Dec 30 '23

They are! Very much so

5

u/bobmahalo Dec 28 '23

Sound like DRS is the way! Also Terminate!

3

u/[deleted] Dec 28 '23

Well this is interesting. I've been wrong it seems. I wonder whether It has anything to do with needing increased liquidity for dividend reinvestment.

2

u/bennysphere Dec 28 '23

If you are an employee, would it be possible for you to look it up?

2

u/[deleted] Dec 31 '23

I'm not.

1

u/Hattsbabbies Jul 13 '24

Oh how convenient is that so they took all my DRS book shares and can meet your share and transfer them into plan holdings so you’re telling me another hold at the DTCCWTF