DD Support Board and Research Team

[BigBake1]

It is a negative consequence to trading for the trading symbol. Shares now must be on hand for them, they can no longer tally up shares at the end of the trading day and then sell them for settlement. The DTCC is the central counter party in all deals garuanteeing the T+3 settlement period of time. They take the buyer finance contract and the sellers shares contract and bind them within three business days. BEHL for example as an unsolicited quote stock will now have to have the shares up front to trade just like all retail to retail trades do.

The Daily Reg Sho report that is often misused by novices show the actual shares settled at the end of the trading days and those that were not on hand to be settled as short. This greatly reduces the flexibility of the trading symbol to sell shares as they now have to go through TA to have shares ready to sell as opposed to just selling after they have an end number. This will also effect cost, as the DTCC averages .00066 per 100 shares traded. They now pay per transaction, which will eat into their profits.

The overall result is reduced liquidity for the market on that trading symbol and increased costs passed on to the company.