blissonmoon, I have had many talks with the the TA, the SEC, and the brokers concerning the transfer process. This is what is "supposed" to happen.
The TA verifies and accounts for all REAL shares. The TA then matches that total to what the DTC shows as free trade, and verifies any held by individuals in cert form. (This also gives them a short total.)
The Brokers are then notified by the TA to furnish specific information concerning each individual holder of record on the books by each brokerage. The TA then has to match each brokerage total and verify each individual holding with the DTC. ( this is where buy/sell dates become important) (This also verifies the short total.)
The TA must then contact each brokerage with any discrepancies, and resolve that issue(phantom shares). The brokerage has to notify the DTC that they have XXX amount of shares held in streetname for XXX amount of clients. The DTC verifies with what the TA has, and they determine which are real and which are NOT real. (that buy/sell date thing again) This is when they determine the breakdown of the shorts per brokerage
The TA then requests the DTC release the streetname shares from the respective brokerages. The TA then proceeds with the cancellation of the streetname shares and notifies the brokerages when that is completed. At that point, the brokerage should remove from your account any reference to the shares...unless they are held in an IRA.
Your broker may debit your account a fee for this release of your streetname shares.
Once the TA has the streetname shares released from the DTC, he will cancel them and issue the new certs with the new cusip #, restricted legend stamped on it, and mail them to the address of record you supplied to your brokerage.
IF..and I stress..IF...you happen to receive your cert with PAIV and the old cusip #. It isn't an issue. The cusip is a unique number that will automatically cross reference with the new cusip # for PAVC. Your cert will show your total # of shares with no fractional shares.
I pointed out the buy/sell date thing because it becomes extremely important when the TA verifies with the DTC. Since we know there are potentially hundreds of millions of phantom shares out there, the brokerages will be telling on themselves at that point...most importantly, who sold phantom (restricted) shares. Who bought phantom (restricted) shares isn't so important....the selling broker is the one that has to supply the cert...not the buying broker. Who bought/sold real free trade shares...all that has to be figured out and verified.
This is the main reason the brokers were so difficult in releasing the shareholder information...the longer they held on to the streetname shares, the longer they had to stall...drive down the pps...cover shorts. Once the certs start arriving at homes....and people start requesting their "free trade" shares certs the brokerages will be held accountable to furnish....well...with a float of ~150k....you know where this is heading. GLTY
