Tuesday, October 18, 2011 7:51:31 AM
ATPT, (currently along with 225 other stocks as of 10-13-11), is on the non-DTC eligible list.
The reason for this DTCC status, though excused in various other ways by the publicly traded company and/or brokerage houses, is quite simple: questionable unregistered shares were issued.
Finding anyone to admit this publicly is impossible though. The SEC no more wants to acknowledge the fallout of unregistered shares than they wanted to acknowledge the fallout of allowing MMs the right to 'maintain an orderly market', ie; naked shorting.
While unregistered shares in themselves is not technically a crime, the problem they created is why the DTCC refuses to clear trading in them electronically. That problem is: unregistered shares opened the door to counterfeit shares, and the DTCC does not want to be caught holding/clearing counterfeit shares any longer.
(Yes, stock certificates can be counterfeited no differently than money. Perhaps easier, since U.S. currency is becoming more and more difficult to counterfeit.)
One might think that they are safe with trading in a non-DTCC eligible stock so long as their brokerage firm does their own self-clearing or uses some other clearing house besides the DTCC. For the time being, this is most likely true. However, there are indications that clearing of stocks with unregistered shares issued may very well eventually be coming to an end, at the current trade rates. The costs for such clearing is slowly becoming unbearable. The risk of clearing stocks that may have counterfeit shares is growing daily and the revenue generated from doing so is becoming unjustified. This is why brokerage firms are starting to charge exorbinent rates to physically clear certain stocks, ie; those with (questionable) unregistered shares. Physical clearing ensures the shares bought or sold are authentic, and not counterfeited or naked shorted.
It should be clearly understood, the precedence the DTCC is setting by requiring physical delivery of certain stocks. It is not greed on the part of just one clearing house. It is instead, precaution on their part, for a problem they are anticipating will be growing, and perhaps growing out of control.
No one will deny naked shorting exists, nor can it be denied it is growing. Nothing has changed to divert it yet. Nothing has changed to stop counterfeiting of stock certificates, either. It doesn't take any stretch of the imagination to see where counterfeit and/or naked shares will lead. The DTCC is merely putting their foot down and protecting themselves from clearing any stocks with questionable shares issued.
One only needs to comprehend the magnitude of this physical clearing action taken by a large clearing house to understand how/why this very same action will become commonplace at all brokerage firms, in due time.
GLTA and trade wisely!
For more on the DTCC issues, visit: http://investorshub.advfn.com/boards/board.aspx?board_id=22531
IHub's Most Marked Board: investorshub.advfn.com/boards/board.aspx?board_id=7489
Recent PBAJ News
- Form 10-Q/A - Quarterly report [Sections 13 or 15(d)]: [Amend] • Edgar (US Regulatory) • 02/27/2024 10:30:04 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 02/21/2024 07:58:17 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/20/2024 10:13:25 PM
- Form NT 10-Q - Notification of inability to timely file Form 10-Q or 10-QSB • Edgar (US Regulatory) • 02/14/2024 05:29:19 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 11/17/2023 09:26:13 PM
- Form NT 10-Q - Notification of inability to timely file Form 10-Q or 10-QSB • Edgar (US Regulatory) • 11/14/2023 05:55:24 PM
- Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405] • Edgar (US Regulatory) • 10/13/2023 05:46:12 PM
- Form NT 10-K - Notification of inability to timely file Form 10-K 405, 10-K, 10-KSB 405, 10-KSB, 10-KT, or 10-KT405 • Edgar (US Regulatory) • 10/02/2023 08:23:59 PM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM