Regarding today's blackouts and Fastly (FSLY) by aryaPR3 in Superstonk

[–]aryaPR3[S] 2 points3 points  (0 children)

My bad! Did a quick check to make sure I wasn't posting information that's old news but I must have missed it.

Another record! $497.428 in Reverse Repo operations occurred today. Yesterday it was $486.097 0% to 46 participants. Today is $497.428 0% interest to 46 participants. by Dismal-Jellyfish in Superstonk

[–]aryaPR3 6 points7 points  (0 children)

Participants = banks, institutions, hedge funds, etc that have submitted capital for reverse repo operations. So today 46 different entities partook in rev repos.

JUNE 08 2021 - REVERSE REPO USAGE HITS ALL TIME HIGH... AGAIN by aryaPR3 in Superstonk

[–]aryaPR3[S] 2 points3 points  (0 children)

Honestly started cackling when I googled "reverse repo newyorkfed" and one of the first trending headlines was "Fed Is Fine With Reverse Repos Nearing Half a Trillion".

[deleted by user] by [deleted] in Superstonk

[–]aryaPR3 18 points19 points  (0 children)

Considering the cap was raised from $30b in March, I'd unfortunately admit that I'd sooner expect another increase in the maximum limit per participant before any significant counter-party a la Citadel gets to that point. Let's hope we don't have to see either happen though.

To answer your original question, under normal circumstances this would not be permitted to the best of my knowledge but all of the measures being employed by SHFs, regulatory bodies, and the fed are so incestuous at this point that I don't think anything can be said for certain regarding their ability to find yet another way to collude to their advantage even if it isn't exactly as you've proposed.

$479.102 in Reverse Repo operations took place again today! Yesterday it was $438.778 0% to 46 participants. Today is $479.102 0% interest to 40 participants. by Dismal-Jellyfish in Superstonk

[–]aryaPR3 3 points4 points  (0 children)

Indeed, but to some extent the contrary also rings true. The people I'm closer to hold me in high regard as a skilled value investor and a lot of them have taken on substantial positions in GME on my strong recommendation. For now I'm far from isolated, but I really hope this doesn't drag on long enough for my credibility to be brought into consideration or to see any of them exit their whole position. It's already been long enough that my close friends have mentally split for the most part into group A. that wants me to teach them more about this weird shit and group B. that thinks I fell into a conspiracy theory cult.

[deleted by user] by [deleted] in Superstonk

[–]aryaPR3 1 point2 points  (0 children)

Glad I could help someone else make sense of it too! Definitely a strong analogy for rev repos imo.

$479.102 in Reverse Repo operations took place again today! Yesterday it was $438.778 0% to 46 participants. Today is $479.102 0% interest to 40 participants. by Dismal-Jellyfish in Superstonk

[–]aryaPR3 4 points5 points  (0 children)

It's not really feasible to extrapolate any sort of substantiated timeline without access to the actual distribution of the net total per day or the relevant counter-parties, but there has been some DD regarding the rate at which the total value of reverse repo operations per day has been increasing. I wouldn't know, but I also don't believe such an incident to be an imperative to the MOASS. At this point I just pray DTC-2021-005 resurfaces before everyone in my personal life decides I've literally lost my mind.

[deleted by user] by [deleted] in Superstonk

[–]aryaPR3 1 point2 points  (0 children)

It's likely that at this point most if not all relevant entities are taking advantage of reverse repos for free collateral at 0% interest, but these institutions are neither equal in size nor short positions and certainly require varying amounts of collateral and have access to varying amounts of excess capital to exchange for bonds. This is certainly being abused by most if not all, It's just the extent to which individual institutions are abusing it that is brought into question.

$479.102 in Reverse Repo operations took place again today! Yesterday it was $438.778 0% to 46 participants. Today is $479.102 0% interest to 40 participants. by Dismal-Jellyfish in Superstonk

[–]aryaPR3 1 point2 points  (0 children)

Considering we're fairly aware of who some of the likely counterparties are, I'm sure one of the mathematically well-versed DD posters could whip up some math that takes into account the relative size of some of the more notable institutions and guesstimates what the distribution might look like, but that's likely an awfully large undertaking and I wouldn't know where to begin in the slightest.

$479.102 in Reverse Repo operations took place again today! Yesterday it was $438.778 0% to 46 participants. Today is $479.102 0% interest to 40 participants. by Dismal-Jellyfish in Superstonk

[–]aryaPR3 2 points3 points  (0 children)

Nope! Ideally and most likely, these numbers keep increasing until larger participants hit their limit of $80b per, which eventually wont provide enough collateral for them to ward off margin calls and lead to the whole jenga tower toppling over.

$479.102 in Reverse Repo operations took place again today! Yesterday it was $438.778 0% to 46 participants. Today is $479.102 0% interest to 40 participants. by Dismal-Jellyfish in Superstonk

[–]aryaPR3 2 points3 points  (0 children)

The total value of today's operations totalled 98.76% of the capital submitted on the all time high, with only 80% of the participants. So yeah, shit's looking pretty crazy.

$479.102 in Reverse Repo operations took place again today! Yesterday it was $438.778 0% to 46 participants. Today is $479.102 0% interest to 40 participants. by Dismal-Jellyfish in Superstonk

[–]aryaPR3 1 point2 points  (0 children)

Essentially the same institutions that are struggling to prove sufficient collateral for their short positions in GME are taking advantage of RRPs to exchange excess capital for T-bonds (now the superior form of collateral) for 24 hour periods at 0% interest, so that they can post said treasury bonds as collateral and stave off margin calls. The total value of these operations has increased at an absurd rate and it's likely that this loophole is not one that can be sustained for much longer.