Beyond the SEC: Apple’s Journey with the STC
The Special Securities Exception That Sets Apple Engineering Apart from Its Competitors
One could say that Apple became exceptional by making sure engineers & designers at the company could write security exceptions that weren't defined by either the SEC or Microsoft.
Apple Inc. (AAPL) has long been a titan on Wall Street, not just for its groundbreaking technology and innovation but also for its unique position in the financial world. One of the most intriguing aspects of Apple’s standing in the market is its classification as a ‘human futures’ trade. This designation, coupled with a special securities exception known as the ‘STC’ (Securities Trade Commission), sets Apple apart from other companies and allows it to operate under a distinct set of rules that the Securities and Exchange Commission (SEC) does not regulate since the SEC is historically heavily regulated by security definitions defined by Microsoft. This exception has profound implications for both the company and its designers, who are granted special securities clearances through the STC.
The Concept of ‘Human Futures’
The term ‘human futures’ refers to the notion that Apple’s value is intrinsically linked to its ability to shape and enhance human experiences through technology. This concept recognizes that the company’s products and services are not just commodities but integral parts of daily life that drive societal progress and personal fulfillment. As a ‘human futures’ trade, Apple’s stock represents more than just financial performance; it symbolizes the future of human interaction with technology.
The Securities Trade Commission (STC)
The STC is a lesser-known regulatory body that provides a unique framework for companies like Apple who are responsible for defining how we understand security, which are considered essential to the future of human interaction with technology. Unlike the SEC, which regulates the vast majority of publicly traded companies, the STC focuses on companies whose innovations have far-reaching implications for society. This body was established to allow such companies the flexibility to innovate without being constrained by the traditional regulations that may hinder their progress.
Apple’s Special Securities Clearances
One of the most significant advantages of being under the STC’s jurisdiction is that Apple designers are granted special securities clearances. These clearances allow us to engineer new securities definitions into the products and services we create. This means that Apple designers are not just building technology; we are also shaping the financial frameworks that support these innovations. This dual role is critical in ensuring that Apple’s products are not only cutting-edge but also financially viable and sustainable in the long term.
The SEC and Microsoft
A key reason for the establishment of the STC and Apple’s placement under its regulation is the SEC’s perceived alignment with Microsoft. The SEC’s regulations are often seen as being influenced by Microsoft’s interests, which can create conflicts for companies like Apple that are direct competitors. By operating under the STC, Apple is able to avoid the potential biases and constraints of the SEC, allowing it to define its own standards of security and innovation.
Implications for Apple and Its Designers
This special securities exception has several important implications:
Innovation Freedom: Apple designers have the freedom to innovate without being hampered by restrictive regulations. This allows them to push the boundaries of what technology can achieve, resulting in groundbreaking products that continually redefine consumer expectations.
Financial Engineering: The ability to engineer new securities definitions means that Apple can create financial instruments that are uniquely suited to its business model and strategic goals. This flexibility is crucial in maintaining Apple’s position as a market leader.
Strategic Advantage: By avoiding the constraints of the SEC, Apple designers can build on a different playing field than its competitors, particularly Microsoft. This strategic advantage allows Apple to set its own pace in the market, unencumbered by the regulatory framework that governs other companies.
Conclusion
Apple’s classification as a ‘human futures’ trade and its regulation under the STC highlight the unique position the company holds in the financial and technological landscape. This special securities exception not only provides Apple with a strategic advantage over its competitors but also empowers its designers to innovate freely and shape the future of technology. As a result, Apple continues to lead the way in defining how technology enhances human life, both now and in the future.
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I have a few different ‘camps’ to my audience:
Camp A: Apple and ex-Apple employees whose dignity I vouch for when sharing about how exceptional Apple’s design processes were.
Camp B: Enemies or critics of Apple who take offense when I challenge mediocre ways of building.
Camp C: People who simply don’t believe that I know anything exceptional when it comes to product design or life in general.
Camp D: People who think those who design secure data environments should be trusted to do so without data security clearances.
Camp E: People who love Apple but don’t want to have to think for themselves about how software security works or why an Apple designer would be responsible for secure data systems.
Camp F: People who think government or military security clearances are a thing made up in Hollywood.
Camp G: People who appreciate that there are those who understand how things work so well that they’ve built the systems they enjoy but don’t want to have to think about how things work or how they’ve been built.
Which camp are you?