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Except, individuals don't own accounts at DTC, so you'll have to hack and twiddle a few bits here and there of the custodial bank as well. But these are reconci
by sidko 11y ago
Except, individuals don't own accounts at DTC, so you'll have to hack and twiddle a few bits here and there of the custodial bank as well. But these are reconciled each day against Security Position Reports generated at the end of the day, so your bits need to reconcile with trades. So you need to hack and twiddle a few bits here and there for a chosen counterparty as well. Except, the exchanges keep track of trades too, so you'll have to twiddle a few bits here and there for an exchange as well.
It's not as simple as this at all, which is why the system has existed for decades. It's not the most efficient, but it's not something that will be replaced by a hackathon project either.
- colinbartlett 11y agoMy startup is, in fact, disrupting the custodial stock ownership space right now and we grew out of a FinTech hackathon last year. I'm joking of course, but it's only a matter of time until someone tries to Uber (can we make that a verb?) their way over these regulations. And fails miserably at it.
- zitterbewegung 11y agoWe would need a verb that encompasses general infringement of laws that isn't trademarked. Also it would have been called someone trying to YouTube their way back a few years ago.
- bronson 11y agoNapstering?
- zitterbewegung 11y agoThat is perfect!
- zitterbewegung 11y agoThat is perfect!
- tedunangst 11y agoBut who would use it? As far as I know, the banks are pretty happy with this system. And while it's possible to be "that guy" with paper stocks, it's a pain in the butt since you can basically only trade them with people you find on Craigslist. A single centrally managed monopoly seems to be exactly what everybody wants.
- erichurkman 11y agoAs-is, if you hold a paper stock certificate for a privately-held company, you likely cannot sell it. Private stock typically has transfer and sales restrictions; you can only sell if the company approves of the sale or transfer.
- ars 11y ago> since you can basically only trade them with people you find on Craigslist. You can sign them and send them in to your broker.
- deleted 11y ago[deleted]