Micro Imaging Technology Inc (MMTC)

[heatherd]

Here's the chat w/ customer service at Zecco. I'm not sure what to do. $200-$700 in fees?? WTF? Does this vary by broker?


Thank you for choosing Zecco Trading. A representative will be with you shortly. For Security purposes, all chat sessions will be recorded.

You are now chatting with 'Mark S.'

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

You: Hi... have a couple questions. I currently have a position in MMTC, CUSIP 59484E100. There was a memo out stating that "...Effective close of business January 6, 2012, NSCC has exited positions from the Continuous Net Settlement System...future trades will be designated trade for trade."

You: What does this mean?

Mark S.: I can certainly look into this for you. Please allow me a few moments to research this. May I inquire where you read the memo?

You: Yep... one sec

You: http://www.dtcc.com/downloads/legal/imp_notices/2012/nscc/a7349.pdf

You: There's the link to PDF

Mark S.: Thank you for waiting. I'll be with you in just a moment.

You: No problem, thanks.

Mark S.: It means every single trade has to be settled instead of at the end of day the net of all trades being settled at once. This does not affect you if you are just holding the position and not trading it.

You: So, this wouldn't be the "Non-DTC" horror stories I've read about? Specifically, huge fees when trying to sell?

You: And maybe buy too? Not sure?

Mark S.: This has to do with the way trades are settled in the system, it has nothing to do with if it is DTC eligible or not, you would have to check the stock if it was. If it was non-DTC eligible, this means that each trade would incur the physical settlement fees instead of 1 net trade's fees.

You: Ok, thank you. That's what I wanted to check on.

Mark S.: This is an indication that services might be chilled at DTC, although it is separate. Was there a specific security you wanted me to look into?

You: MMTC

You: I'm sorry, I don't understand what you mean when you say "...services might be chilled at DTC." Could you elaborate?

Mark S.: MMTC is non-DTC eligible.

Mark S.: MMTC has been recently deemed Non-DTC eligible. What this means is that the company is not eligible for electronic clearing and settlement, therefore, trades need to be settled with physical certificates which carries with it a substantial cost. Zecco is currently only accepting orders for these symbols via phone at 877-700-7862. We apologize for the inconvenience, but this is done to ensure you are fully aware of the fees (approximately $200-$700 assessed by the market entities) associated with settling trades by way of physical delivery.

You: This is effective the end of the business day, correct?

Mark S.: This is effective as of now, I checked with our clearing firm to confirm its eligibility.

You: And do you know the parameters used to determine whether or not a stock is or isn't DTC eligible? Is it likely the status will change?

Mark S.: It has to do with the company's filings with the DTC. You can check if the company has any plans to get back in good standing with the DTC by contacting their investor relations department.