Quick analysis of Alpine's new dilution rules for
Post# of 2009
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Posted On: 04/12/2018 10:39:06 AM
Quick analysis of Alpine's new dilution rules for those curious>>>
It's end of day today that BMIC supposedly gets shut down and therefore tomorrow when Alpine's new highly restrictive dilution rules kick in according to Alpine themselves ok.
So tomorrow fwd Alpine's gonna place insane restrictions on how much dilutive paper funders can sell on sub penny plays...and theyre gonna force penny funders to put up large cash collateral to even dilute sub penny plays moving fwd based on their newly imposed ARC rules.
Sub penny funders will still be able to dilute but only on a 1st come 1st serve basis so there will be only 1 diluter per sub-penny play that's even active...and only if they put up large cash collateral...and even then theyre gonna be subject to only selling small 20% amounts based on the 20 day avg liquidity in play over any rolling 2 day period ok.
Call it an "illiquidity premium" based on alpine's new Adjusted Risk Capital(ARC) rules...because tomorrow forward Alpine clearing will no longer be X clearing.
And market maker BMIC is supposed to be getting shutdown today which was the mm the brokers that cleared sub-penny plays through alpine clearing used.
What it should mean for us joe retailers moving fwd...is severely limited dilution on sub-penny plays ok. But we also will have to find sub-penny plays that already recently received funding to put the company's in a position to put out growth driving news flow ok.
It should also eventually lead to a far more active plus penny market than what we've seen.
Over the course of the next week or so we'll all be slowly but surely figuring out the new otc landscape we find ourselves in and making the appropriate adjustments!
It's end of day today that BMIC supposedly gets shut down and therefore tomorrow when Alpine's new highly restrictive dilution rules kick in according to Alpine themselves ok.
So tomorrow fwd Alpine's gonna place insane restrictions on how much dilutive paper funders can sell on sub penny plays...and theyre gonna force penny funders to put up large cash collateral to even dilute sub penny plays moving fwd based on their newly imposed ARC rules.
Sub penny funders will still be able to dilute but only on a 1st come 1st serve basis so there will be only 1 diluter per sub-penny play that's even active...and only if they put up large cash collateral...and even then theyre gonna be subject to only selling small 20% amounts based on the 20 day avg liquidity in play over any rolling 2 day period ok.
Call it an "illiquidity premium" based on alpine's new Adjusted Risk Capital(ARC) rules...because tomorrow forward Alpine clearing will no longer be X clearing.
And market maker BMIC is supposed to be getting shutdown today which was the mm the brokers that cleared sub-penny plays through alpine clearing used.
What it should mean for us joe retailers moving fwd...is severely limited dilution on sub-penny plays ok. But we also will have to find sub-penny plays that already recently received funding to put the company's in a position to put out growth driving news flow ok.
It should also eventually lead to a far more active plus penny market than what we've seen.
Over the course of the next week or so we'll all be slowly but surely figuring out the new otc landscape we find ourselves in and making the appropriate adjustments!
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