Yale Transaction Finders Inc. (YTFD)

[Mr. Zen]

Well I enlightened myself

If an issuer is not DTC eligible, then its shares cannot be transferred between brokerage accounts electronically, which basically means its shares cannot be traded easily. Major Exchanges such as NYSE and NASDAQ require DTC eligibility. Other Platforms such as the OTC Bulletin Board and the Pink Sheet markets do not. Only a DTC participant can request that DTC make a security eligible. Most large U.S. broker-dealers and banks are DTC participants. Once an issuer has been approved for trading by FINRA, they must apply to DTC for their initial eligibility to trade. If DTC approves the application they will hold all of the issuer’s free-trading street name shares on deposit. As with a Form 15C-211 submission to FINRA , an issuer cannot make a direct application to DTC for eligibility. The issuer must have a relationship with a broker-dealer or other financial institution that is a participant and will sponsor the eligibility process. This firm is also known as the “market-maker”. They will carry the initial position in inventory on behalf of their firm. A current List of DTC Participants (http://www.dtcc.com/downloads/membership/directories/dtc/alpha.pdf) is available on DTC’s web site. The Issuer must also have a transfer agent such as Securities Transfer Corporation that has completed and has on file with DTC a DTC Operational Arrangements Agent Letter, and must also be a participating in DTC’s FAST (Fast Automated Securities Transfer) program.

It is a well-known fact in the securities industry that DTC retains the right to deny a company the ability to use their depository without providing a reason for the denial. Therefore, the eligibility review process should include a clean presentation of facts and documents that meet DTC’s standards. Eligibility requirements include that the securities must be; issued in a transaction registered with the U.S. Securities and Exchange Commission (“SEC”) pursuant to the Securities Act of 1933, as amended (the “Securities Act”); or issued in a transaction exempt from registration pursuant to a ’33 Act exemption, that at the time of the request for DTC eligibility no longer involves transfer or ownership restrictions; or eligible for resale pursuant to Rule 144A or Regulation S under the ’33 Act (and must otherwise meet DTC’s eligibility criteria).