ProElite, Inc. (fka PELE)

[nycatwalk]

When I asked my broker, who is the one at risk, instituition or investor, when there is a "Global Lock" placed on a security, the reply I received was:
In most, if not all, of those cases where there is a DTC lock, the risk is taken by the customer. As state previously, there is no guarantee that you will receive payment. We deliver the shares to the other firm, and they are supposed to deliver the cash to your account. While we do not give you actual cash upfront, you may be allowed to use the anticipated proceeds to purchase another security. You will receive the proceeds of the sale when and if, the other side pays the proceeds on the settlement date. Because of this risk of non-payment to the client, we have not allowed trading in this security.

I understood the explanation of the "Global Lock" and DTC reasoning but I wanted to know why some brokerages were a green light and some were not.