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Re: None

Monday, 08/22/2011 10:15:05 AM

Monday, August 22, 2011 10:15:05 AM

Post# of 15015
ok.. VLCO is on the Non-DTC eligible list with Zecco...

VLCESC 929ESC960
VLCMCN 928WDR873
VLCMCT 928996958
VLCMXZ 92864N101
VLCO 91888T409
VLCR 922563101
VLCTXZ 91915Q105
VLCXYZ 656550100
VLCYCS 929CSH963
VLCYXZ 926720103
VLCYYZ 92908U103

And here's a conversation I just had with a rep via chat...

You are now chatting with 'Michelle'

Michelle: Thank you for contacting Zecco Trading. How may I assist you today?

You: Everyone seems to be freaking out about this new non-DTC-eligible status policy... How does one determine if a ticker is listed on Zecco's non-DTC-eligible status list? Also, it seems that many have planned on moving their accounts to other brokers because of this change, seeing that other firms do not impose such fees in the same tickers that Zecco does. Seems that Zecco has become adversarial in regard to those who make the most trades with them, and hence, make Zecco the most money... the penny stock traders and day traders. Another issue is that Zecco will allow a trader to purchase non-DTC-eligible securities without any warning or notice of its status, but when the trader attempts to sell it, then they discover the high fees involved with the trade. Are there any plans to flag the entry of a starting position trade when that trade is non-DTC-eligible? and Finally, is VLCO on your non-DTC-eligible list?

Michelle: I'm sorry for the delay. I'll be right with you.

Michelle: I apologize for any inconvenience. I can imagine that it is quite a surprise but it is becoming more of a standard with these types of securities.

Michelle: Please understand that these fees do not financially benefit Zecco Trading, they are strictly pass-through fees for the cost of settlement.

Michelle: These fees are fees we do want customers to avoid, however, it is not always possible as they happen so quickly and we can't block securities fast enough at times. This is why it is imperative that you know the risks associated with these types of securities by reading our penny stock disclosure and our FAQs.

Michelle: Currently, VLCO is non DTC.

You: I'm sorry, do you mean that VLCO is not on the non0eligible list, or that it is non eligible?

Michelle: It is currently non DTC eligible.

You: well... here is a copy on another Zecco account holder with another Zecco account rep...

You: Jeff: I was wondering if VLCO is on Zeccos non DTC list? Will I be charged any additional fees if I sell the 100,000 shares that I have in my account? Jasmine: Let me check on this security. Please give me a moment. Jeff: ok Jasmine: Thank you for waiting. I'll be with you in just a moment. Jasmine: I do not see VLCO currently listed as non DTC eligible, however this information can change on a day to day basis. Jeff: OK thank-you!

You: This states that it is NOT on the list, but that the status can change from day to day... this seems extremely arbitrary, don't you think?

You: Also, VLCO is not listed on these DTC list websites... www.mastertrader.com/TradingResources/dtcc.aspx and http://www.tradingdirect.com/Static/StandAlone/non_dtcc_list.pdf#zoom=80%

You: So, who at Zecco is deciding which securities are non-DTC and exactly what is the criteria being used to make such a determination?

Michelle: I apologize for any confusion. VLCO is non DTC eligible at this time. We can't simply follow other websites claims on securities.

You: then again, So, who at Zecco is deciding which securities are non-DTC and exactly what is the criteria being used to make such a determination?

You: especially when it is NOT listed as non-DTC elsewhere and is NOT restricted by other brokerages?

You: And are you implying that VLCO was just added to the non-DTC list this morning?.. as the above referenced conversation just took place this morning.

You: And if VLCO was just added to the list this morning, Why?

Michelle: We do not decide on which securities are non DTC, neither our clearing firm. WE have very little control over which securities. The fees generated by the settlement of these physical positions are passed through by our clearing firm, Penson Financial, directly to our customers - neither Zecco Trading nor Penson mark up these fees.

You: I am not asking you about a markup. I am asking about the criteria used, give me the ultimate source that Zecco is using to determine a security's eligibility status.

You: How can I effectively trade if I cannot verify a security's status with Zecco before making a trade?

Michelle: We do not have information on why a security is ineligible.

You: Where do you get the information?

Michelle: It is imperative that you know the risks associated with these types of securities by reading our penny stock disclosure and our FAQs. It is your responsibility to investigate the eligibility status of a low-priced equity before trading it. You may consult the Known Non-DTC Eligible List on our Forms Library.

You: How do you know what securities are ineligible? That information comes from somewhere.. where? Just so that I can verify before entering a trade.

You: What is the link to your forms library?

Michelle: Please click here

You: I don't mean to be forward, but we have had two reps from Zecco in the same morning give conflicting info regarding the same security.

Michelle: I understand you concern. I will forward your feedback to make sure we are providing correct and consistent information.

Michelle: I apologize for the inconvenience. Aside from this, is there anything else that I may help you with today?

You: What if I am currently holding securities that are now found on the list.. may those securities be sold, and sort-of, grandfathered in without being assessed these astronomical fees? being that they were purchased months ago?

Michelle: It is possible liquidate your position by settling trades with delivery of physical certificates, however the fees associated with such a transaction are estimated to range from $200 - $700 per trade. We are unable to waive the fees.

You: Thank you... I will be pursuing transferring my holdings and my account to another brokerage... you have been very patient, and for that, I thank you.

Michelle: You're welcome. Please do not hesitate to contact us again if you have other questions.
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