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DTC~ DHSM is in for something.. lol Did

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Militia Man Member Level  Saturday, 11/09/13 01:11:09 PM
Re: Outlaw post# 53630
Post # of 56235 
DTC~ DHSM is in for something.. lol Did some say they new exactly why a Global Lock was put in place with facts from the SEC or DTC, etc, explaining the circumstance specifically? I don't see it. Maybe the DTC is doing another program?

Quote:
DTC will support a program to facilitate the industry's clean up of aged fails in select globally
locked securities.
This notice details the information necessary for firms to participate in this
program, which is scheduled to occur during the period August 15, 2011 through August 19,
2011.

Background

DTC may impose certain restrictions on a security in situations where DTC may become aware of
certain potentially illegal or otherwise questionable features of a security, its issuer or other principal
parties
. In addition, DTC may place restrictions when it has been informed by the issuer or its agent,
regulators or law enforcement, or has other compliance concerns that its Cede & Co certificate
inventory has been compromised due to unauthorized, altered, fraudulent or counterfeit share issuance.
If DTC reasonably suspects that all or a portion of its street name holdings of a security, may not be
fungible and freely transferable as required for DTC services, it may decide, with respect to that
security, to chill one or more of its services or place a global lock on all services, as it deems
appropriate.


Impact of a Global Lock and Trade Fails

A global lock on a security prevents the security from being transferred on the books of DTC and
otherwise restricts any DTC activity with respect to the security. For so long as the global lock is in
effect, Participants are unable to settle any further trades in that security, as their inventory is frozen
and settlement of pending trades will fail. If counterparties nevertheless continue to trade in a security
which is globally locked and those trades are submitted to DTC for settlement, those trades will also
fail and be rejected in DTC’s system.

In connection with certain designated CUSIPs (see Exhibit A attached), although DTC issued an
Important Notice to its Participants to advise that the global lock was implemented, many Participants


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