November 28, 2021
As per this comment between pages 4 and 5 of the proposed rule changes:
In a case of an SFT Member default, NSCC would be able to delay its satisfaction of final settlement obligations to non-defaulting SFT Members beyond the normal settlement cycle for the purchase or sale of securities to the extent NSCC determines that taking market action to close-out some or all of the defaulted SFT Members novated SFT Positions would create a disorderly market in the relevant SFT Securities. In such a situation, non-defaulting SFT Members would not be able to effect a recall or an associated buy-in or accelerate the delayed final settlement obligations. During any such delay, NSCC would continue paying to and receiving from non-defaulting SFT Members the payment for the change in market value of the securities with respect to their novated SFTs.
This reads as defaulting members getting a free pass to do whatever they wish, without any of the consequences that might otherwise apply to their actions. If I defaulted on my mortgage the bank would not allow me to simply repay it back whenever I feel like doing so. And yet just because these members have money they are given rights that regular investors wouldn't have. Rules for thee, not for me.
Passing this proposed change will make a mockery of any so called 'free market' that we might pretend to be. This will actively hurt retail investors.