Taking Stock

This week on Taking Stock, Chives and Bibic wrap up this historical miniseries by examining how the vision of the DTC came to fruition and how it impacted the markets at large and how it impacted every day working people. Beneficial ownership has been forced onto everyday investors. The SEC says it’s a choice, but when was the last time DRS was offered to you when investing in a company?

Dematerialization and the transition to book-entry (otherwise known as an electronic record) are discussed, alongside the introduction of a new character in the story - The Direct Registration System.

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Visit https://www.drsgme.org and https://www.whydrs.org

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Links and Resources:

History of DRS / Book Entry Holding

https://www.whydrs.org/post/history-of-drs-book-entry-holding

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Issuers and the DTCC is Choice without a Choice

https://www.whydrs.org/post/issuers-and-the-dtcc-choice-without-choice

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Paper Securities and Dematerialization

https://www.forbes.com/sites/tomgroenfeldt/2020/10/15/paper-securities-still-exist-and-dtcc-is-after-them/

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Suzanne Trimbath’s “Super Hero Origin Story of Direct Registration”

https://nosafebets.com/2021/10/03/super-hero-origin-story-of-the-direct-registration-system-a-transcription/

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Special Thanks to:

Craiyon.com for help with the logo design

Wooch for the intro & outro music

This week on Taking Stock, Chives and Bibic continue looking back in time, but this week it's to The Great Paperwork Crisis of 1968, which led to the rationalization and birth of The Depository Trust (AKA The DTC). We look at why it made sense for the time, but how it is severely outdated today, and the impact that has on markets.

We also had a surprise special guest join us. John Wooten of BlockTransfer, the first blockchain based transfer agent. We spoke to John about the ins and outs of how a blockchain based transfer agent works as well as a current SEC proposal that will enable API access to Edgar filings. This kind of access will allow developers to create apps to not only help with searching through the Edgar system, but to help make the filings as well.

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Twitter/X Link:

https://twitter.com/i/spaces/1YqxoDqLprbKv

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Join the Community:

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Visit https://www.drsgme.org and https://www.whydrs.org

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Links and Resources:

The Birth and Rationalization of Cede

https://www.whydrs.org/post/cede-ing-ownership-why-almost-all-publicly-traded-stock-belongs-to-one-company

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Articles on the Paperwork Crisis of 1968

https://therepubliccapital.com/blog/the-great-paperwork-crises-of-1968

https://www.bbh.com/us/en/bbh-who-we-are/our-story/200-years-of-partnership/the-paperwork-crisis.html

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BlockTransfer - Web3 Transfer Agent

https://www.blocktransfer.com/

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SEC Proposal - Edgar Next

https://www.sec.gov/rules/2023/09/edgar-next

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DTC/Cede holds 83% of all securities - 1998

https://www.sechistorical.org/collection/papers/1990/1998_0101_DTCAR_1.pdf

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Special Thanks to:

Craiyon.com for help with the logo design

Wooch for the intro & outro music

This week on Taking Stock, Chives and Bibic take a trip back in time to the panic of 1907. A panic caused by wealthy people over leveraging themselves, leading to the public trying to take their money back from their respective banks. The same wealthy people that caused the panic decided they needed to protect themselves from future potential bank runs, this led to the creation of the Federal Reserve.

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Join the Community:

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Links and Resources:

The Panic of 1907 and the Birth of The Federal Reserve

https://www.whydrs.org/post/the-panic-of-1907-and-the-birth-of-the-federal-reserve

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The Creature from Jekyll Island

https://archive.org/details/TheCreatureFromJekyllIslandByG.EdwardGriffin

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Companies Who Encourage Direct Registration

https://www.whydrs.org/companies-who-encourage-drs

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Computershared.net is back!

https://www.computershared.net/

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Special Thanks to:

Craiyon.com for help with the logo design

Wooch for the intro & outro music

This week on Taking Stock, Chives and Bibic dive into the various methods and fees to DRS transfer from brokers around the world. Using the information gathered for the 140+ broker guides Bibic has worked on over the past couple of years, many differences and similarities were able to be drawn upon.

If your broker has not been covered by our resources, please reach out and we will be happy to help you through the process.

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Twitter/X Link:

https://twitter.com/i/spaces/1lPJqbaRNRLxb

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Join the Community:

Join us on Discord - https://mee6.xyz/en/i/vYJSX1ghMl

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Visit https://www.drsgme.org and https://www.whydrs.org

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Links and Resources:

International Holders for GameStop (3 images)

https://www.reddit.com/r/drsgme/comments/14lcd9w/international_record_holders_for_gamestop_3_images/

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Letter of Instruction Template – Fillable PDF file

https://web.archive.org/web/20221109151444/https://06e09f6c-b9f2-4a8a-851d-9286ef3cc686.usrfiles.com/ugd/06e09f_dc00d422894f42ca90fd246c6139b1b8.pdf

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Companies Who Encourage Direct Registration

https://www.whydrs.org/companies-who-encourage-drs

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Computershared.net is back!

https://www.computershared.net/

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Special Thanks to:

Craiyon.com for help with the logo design

Wooch for the intro & outro music

This week on Taking Stock, Chives and Bibic follow up from last week’s SEC bulletin breakdown with a handy diagram that visualises the 3 different forms of digital shareholdings, and the various forms of ownership associated with them.

It’s important to learn what distinguishes each form of holdings as well as each form of ownership from each other. For example, being a beneficial owner, and a registered owner isn’t mutually exclusive. You can actually be both at the same time. Listen along or check out the links of ownership page linked below for more information.

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Twitter/X Link:

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Join the Community:

Join us on Discord - https://mee6.xyz/en/i/vYJSX1ghMl

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Visit https://www.drsgme.org and https://www.whydrs.org

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Links and Resources:

The Links of Ownership

https://www.drsgme.org/the-links-of-ownership

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SEC Bulletin Get the Facts!

https://www.sec.gov/about/reports-publications/investor-publications/holding-your-securities-get-the-facts

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FINRA Bulletin Know the Facts!

https://www.finra.org/investors/insights/know-the-facts-direct-registered-shares

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Computershare FAQ on Plan / DRS holdings

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

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Special Thanks to:

Craiyon.com for help with the logo design

Wooch for the intro & outro music

This week on Taking Stock, Chives and Bibic are back after last weeks break with another spotlight episode on Ownership. There is so much nuance to straighten out in just a single word! We’ll be pulling out the sources so you all can follow along with our logic and conclusions. This conversation needs to be had - and needs to continue being had - in order for everyone to make the holding choice which is best for them.

The regulatory agencies, self regulating organizations, and the transfer agents are all on the same page about the difference in ownership between Plan and DRS. Let’s get ourselves on that same page too!

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Twitter/X Link:

https://x.com/i/spaces/1zqJVqyDVZDGB

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Join the Community:

Join us on Discord - https://mee6.xyz/en/i/vYJSX1ghMl

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Visit https://www.drsgme.org and https://www.whydrs.org

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Links and Resources:

Computershared.net is back!

https://www.computershared.net/

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SEC Bulletin Get the Facts!

https://www.sec.gov/about/reports-publications/investor-publications/holding-your-securities-get-the-facts

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FINRA Bulletin Know the Facts!

https://www.finra.org/investors/insights/know-the-facts-direct-registered-shares

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Computershare FAQ on Plan / DRS holdings

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

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Special Thanks to:

Craiyon.com for help with the logo design

Wooch for the intro & outro music

This week on Taking Stock, we continued the conversation with Jack where we left off last week - how the separation of voting and economic rights can be realized by actors intentionally using market mechanics, and what downstream effects that can have on retail investors - including the tax implications on regular people from the largest participants in the market.

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Itinerary:

https://imgur.com/bwKx3OD

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Join the Community:

Join us on Discord - https://mee6.xyz/en/i/vYJSX1ghMl

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Visit https://www.drsgme.org and https://www.whydrs.org

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Links and Resources:

jackofspades123 Slideshow on Failures to Deliver

https://imgur.com/a/60QROdr

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Babel Source Congressional Report Dec 06 1991

https://babel.hathitrust.org/cgi/pt?id=mdp.39015087623214&view=1up&seq=1249&skin=2021

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FINRA Source Link

https://www.finra.org/rules-guidance/notices/93-53

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Actual Law

https://www.law.cornell.edu/cfr/text/17/240.15c3-3

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Leslie Boni Source

https://vdocument.in/leslie-boni.html

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Market To Market Accounting Investopedia

https://www.investopedia.com/terms/m/marktomarket.asp

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DTCC on Settlement"

https://www.dtcc.com/-/media/Files/Downloads/legal/service-guides/Settlement.pdf

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Asimar & Trimbath Source

https://www.aimspress.com/article/id/6360d16eba35de77c348c2c4

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Richard L Gregg Aged Treasury Fails Source

https://www.treasurydirect.gov/laws-and-regulations/gsa/regulatory-cites/cite-11-22-1989-2/#:~:text=A%20fail%20becomes%20aged%20when,of%20time%20beyond%20settlement%20date

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Taxes: Wash Sale Source

https://www.irs.gov/pub/irs-pdf/p550.pdf

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Shorting Against The Box Investopedia

https://www.investopedia.com/terms/s/sellagainstthebox.asp#:~:text=For%20example%2C%20if%20you%20own,the%20short%20position%20in%20another

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Shorting Against The Box Law Source

https://www.law.cornell.edu/uscode/text/26/1259

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Shorting Against The Box Law Source

https://www.law.cornell.edu/uscode/text/26/1259

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Empty Voting & Taxes Source

https://ccl.yale.edu/sites/default/files/files/PM-6-Bus-Law-Hu-Black.pdf

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Special Thanks to:

Craiyon.com for help with the logo design

Wooch for the intro & outro music

This week on Taking Stock, we dove into the economic and voting rights which an investor is granted after purchase, and what assumptions investors make about those rights. jackofspades123 joined us for this deep dive, and we had a great conversation! Jack prepared some slides and sources - these slideshows are linked in the show notes.

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Itinerary:

https://imgur.com/BzfKmKo

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Join the Community:

Join us on Discord - https://mee6.xyz/en/i/vYJSX1ghMl

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Visit https://www.drsgme.org and https://www.whydrs.org

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Links and Resources:

Computershared.net is back!

https://www.computershared.net/

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jackofspades123 Slideshow on Voting Rights

https://imgur.com/a/wrNlVP3

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jackofspades123 Slideshow on Settlement

https://imgur.com/a/nO8gJHc

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Babel Source Congressional Report Dec 06 1991

https://babel.hathitrust.org/cgi/pt?id=mdp.39015087623214&view=1up&seq=1249

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Security Entitlements Source Link

https://www.sec.gov/news/speech/2007/spch101607ers.htm

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One Share One Vote Source

https://scholarlycommons.law.hofstra.edu/cgi/viewcontent.cgi?referer=&httpsredir=1&article=1166&context=faculty_scholarship

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Pre/Post Reconciliation Source

https://katten.com/files/21384_proxy-vote-processing-issues.pdf

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Broadridge Comment Letter Source

https://www.sec.gov/comments/4-681/4681-6355043-196249.pdf

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Bob Drummond - "Corporate Voting Charade"

https://web.archive.org/web/20060421085925/http://www.rgm.com/articles/FalseProxies.pdf

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Empty voting Source

https://ccl.yale.edu/sites/default/files/files/PM-6-Bus-Law-Hu-Black.pdf

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North American Securities Administrators Association Inc. Comment Letter

https://www.sec.gov/comments/s7-12-06/jpborg7410.pdf

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EuroMoney Article

https://www.euromoney.com/article/b1320x8lxd0ksk/naked-short-selling-letters-to-the-editor-dtcc-and-r-j-shapiro#answer

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Congressional Report Dec 06 1991

https://babel.hathitrust.org/cgi/pt?id=mdp.39015087623214&view=1up&seq=1249&skin=2021

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Special Thanks to:

Craiyon.com for help with the logo design

Wooch for the intro & outro music

This week on Taking Stock, hosts Lawson, Chives and Bibic were joined by Bill Pulte and Kevin Mallone in order to discuss a variety of pressing community topics. Bill and Kevin are two of the larger figures in our investing advocacy community and they shared their perspectives on dealing with online criticism, with seeking truth, with evaluating the SEC, and on the details of the Plan and Book designation distinctions. There was a lot of passion and a lot of wisdom on display here. It’s always great being able to have these discussions.

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Itinerary:

https://imgur.com/3KB9wRd

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Join the Community:

Join us on Discord - https://mee6.xyz/en/i/vYJSX1ghMl

Join us on Lemmy - https://lemmy.whynotdrs.org/

Visit https://www.drsgme.org and https://www.whydrs.org

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Links and Resources:

Computershared.net is back!

https://www.computershared.net/

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Kevin Malone’s new Charity

https://twitter.com/malone_wealth/status/1704602400324190449

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SEC Bulletin - Get the Facts about Holding Securities

https://www.sec.gov/about/reports-publications/investor-publications/holding-your-securities-get-the-facts

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Computershare update on plan shares

https://youtube.com/watch?v=9Ii-5tgvZKk&t=89s

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With plan, investors names are in a subclass

https://youtu.be/bo427AW0anw?t=731

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DirectStock brochure

https://cda.computershare.com/Content/7bfc0b25-4836-40a4-918c-9a86d658d798

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Pulte’s Tweet about DRS Friction

https://x.com/pulte/status/1661155862335946753

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GME 2023 Stockholder List Data

https://lemmy.whynotdrs.org/pictrs/image/d5f98246-3bf2-40c8-b96e-2c15c20aedb9.png

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Special Thanks to:

Craiyon.com for help with the logo design

Wooch for the intro & outro music

This week on Taking Stock, Chives and Bibic dove into the recently announced UK Taskforce’s action proposal which seeks to explore feasible routes to full dematerialization of share certificates. Not all solutions are made equal, and the proposal’s favorite solution involves forcing investors to hold through a centralized depository’s nominee rather than holding for themselves and in their own name.

We had a great guest speaker Bellweirboy who joined the call in order to help make sure listeners understood the current impact of the proposal as written, and encouraged collective action through parliament and direct democracy for all UK natives. For everyone else, online comments can be submitted until September 25th 2023.

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Itinerary:

https://lemmy.whynotdrs.org/post/201103

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Join the Community:

Join us on Discord - https://mee6.xyz/en/i/vYJSX1ghMl

Join us on Lemmy - https://lemmy.whynotdrs.org/

Visit https://www.drsgme.org and https://www.whydrs.org

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Links and Resources:

The UK’s Digitization Taskforce

https://www.gov.uk/government/publications/digitisation-taskforce

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Full Report from the Taskforce

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1168398/digitisation_report.pdf

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Computershare’s response to the Report

https://content-assets.computershare.com/eh96rkuu9740/b6d2096ed675446da100e6b5ccbcbc92/1078b3957fdbedbdffbd67ee9278a9c3/SCRR-Digitisation-of-Shareholdings-Discussion-Paper.pdf

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Shareholder Activism Website and Email Template

https://www.shareholder-feedback.com/en/home/

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BibicJr’s post, pinned on GMEJungle

https://www.reddit.com/r/Superstonk/comments/16de7gy/moass_must_be_close_the_uk_government_are/

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Kibblepigeon’s post on Superstonk

https://www.reddit.com/r/Superstonk/comments/16de7gy/moass_must_be_close_the_uk_government_are/

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Other example letters

https://www.reddit.com/r/Superstonk/comments/16gi9fk/a_letter_to_uks_hm_treasury_from_a_concerned/

https://www.reddit.com/r/Superstonk/comments/16fwpb0/uk_ape_speaking_up_for_investorspotentially/

https://www.reddit.com/r/Superstonk/comments/16bm942/i_do_not_approve_of_you_removing_my_rights/

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SEC Bulletin - Get the Facts about Holding Securities

https://www.sec.gov/about/reports-publications/investor-publications/holding-your-securities-get-the-facts

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FINRA Bulletin - Know the Facts about Direct Registered Shares

https://www.finra.org/investors/insights/know-the-facts-direct-registered-shares

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Special Thanks to:

Craiyon.com for help with the logo design

Wooch for the intro & outro music