The world's 7th largest bank, BNP Paribas, is no longer a DTCC Participant as of August 17 - VIOLATIONS OF RULE 203(A)(1) OF REGULATION SHO, WHICH PROHIBITS LENDING SHARES TO SETTLE SALE ORDERS MARKED AS "LONG." Sound familiar, y'all?
From Wikipedia: BNP Paribas S.A. is a French international banking group. It is the largest French banking group, the largest bank in Europe, and world's seventh largest bank by total assets.
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https://www.dtcc.com/-/media/Files/pdf/2021/8/13/...1/8/13/a9040.pdf)[https:\/\/
www.dtcc.com\/-\/media\/Files\/pdf\/2021\/8\/13\/...55944b7b44beb911)Starting on Page 66, the allegations are outlined:
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https://files.brokercheck.finra.org/firm/....org/firm/firm_15794.pdf)....AT THE TIME OF THE HEDGE FUND'S "LONG" SALE ORDERS, BNPP DID NOTTAKE STEPS NECESSARY TO REASONABLY ASCERTAIN THAT THE HEDGEFUND OWNED THE SECURITIES, NOR DID THE HEDGE FUND'SASSURANCES TO BNPP REASONABLY INFORM BNPP THAT THE HEDGEFUND WOULD DELIVER THE SECURITIES TO ITS BNPP ACCOUNT PRIOR TOTHE SCHEDULED SETTLEMENT DATE. FURTHER, ALTHOUGH THE HEDGEFUND ROUTINELY MADE ASSURANCES TO BNPP THAT ITS ORDERS WEREPROPERLY MARKED AS "LONG" AND THAT IT WOULD DELIVER THESECURITIES TO ITS BNPP ACCOUNT PRIOR TO SETTLEMENT DATE, IT WASNOT REASONABLE FOR BNPP TO RELY ON SUCH REPRESENTATIONSBECAUSE BNPP WAS ON NOTICE OF THE HEDGE FUND'S REPEATEDFAILURES TO DELIVER THE SECURITIES TO ITS BNPP ACCOUNT BYSETTLEMENT DATE. INSTEAD, BNPP AUTOMATICALLY LOANED THESHARES TO SETTLE THESE "LONG" SALES AND DID NOT CONDUCT ANYANALYSIS OR CONSIDER THE KNOWN FACTS AND CIRCUMSTANCES,
INCLUDING THE HEDGE FUND'S HISTORY OF FAILING TO DELIVERENOUGH SHARES TO ITS BNPP ACCOUNT PRIOR TO SCHEDULEDSETTLEMENT, TO DETERMINE WHETHER IT WOULD BE REASONABLE TOCONCLUDE THAT THE HEDGE FUND IN FACT OWNED THE SECURITIES ORWOULD DELIVER THEM TO ITS BNPP ACCOUNT PRIOR TO SETTLEMENT.
IN APRIL 2016, BNPP LOANED THE HEDGE FUND SHARES TO SETTLE"LONG" SALE ORDERS IN ONE SECURITY ON EIGHT CONSECUTIVETRADING DAYS. IN JUNE AND JULY 2016, BNPP LOANED THE HEDGE FUNDSHARES TO SETTLE "LONG" SALE ORDERS IN ANOTHER SECURITY ON 16CONSECUTIVE TRADING DAYS. ON 19 OCCASIONS, BNPP LOANEDSECURITIES TO THE HEDGE FUND TO SETTLE "LONG" SALE ORDERSWHILE THE HEDGE FUND HAD OUTSTANDING LOANS OF THE SAMESECURITIES, WHICH IT HAD BORROWED TO SETTLE PRIOR "LONG" SALESTHAT PREVIOUSLY HAD BEEN SUBMITTED TO BNPP FOR CLEARING. INLIGHT OF THE HEDGE FUND'S CONDUCT, IT WAS UNREASONABLE FORBNPP TO RELY ON THE HEDGE FUND'S STATEMENTS THAT THE HEDGEFUND'S ORDERS WERE PROPERLY MARKED "LONG" AND THAT THE HEDGEFUND WOULD DELIVER THE SECURITIES TO ITS BNPP ACCOUNT PRIOR TOSCHEDULED SETTLEMENT. ACCORDINGLY, BNPP COULD NOT AVAIL ITSELFOF ANY EXCEPTION TO RULE 203(A)(1).BNPP VIOLATED RULE 203(A)(1) ON AT LEAST 35 OCCASIONS WHEN ITLOANED THE HEDGE FUND SECURITIES TO SETTLE SALE ORDERSMARKED AS "LONG."
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https://docoh.com/company/1166588/...s-arbitrage-sa/holdings-history)https://preview.redd.it/...s=3a5a6d1ff460f03fc6afc25ccd546c962315a99f