Baron Capital Enterprise Inc (BCAP)

[BOS]

If anyone has been trading in pinks over the last year, you may have been caught up in a DTC Chill issue.

I personally feel this is HUGE for BCAP business model and from what I can find, there is not any other company trading at this PPS that has this type of potential for such a huge impact on the market.

Baron Capital

Clearing Agency

Baron Capital Clearing Agency (BCCA) is being created to provide an efficient means of clearing and settlement of securities primarily focusing on the small-cap marketplace.

Depository Trust and Clearing Corporation (DTCC) (which is owned by the three major exchanges NYSE, AMEX and NASDAQ) provides clearing for 90% of all US securities, they are also the clearinghouse for all shares held in street name under CEDE & Co.

Recently, the DTCC, along with the industry in general, has made it extremely difficult for small-cap companies to operate in public markets. If a company takes any corporate action that requires a new CUSIP number, a “Chill” is often placed on the new CUSIP number, meaning, it is not “DTCC Eligible.” This causes a problem for investors to trade securities. When this happens, costs for execution of a trade increase, money can be withheld for a longer period of time, and settlement date takes longer.

Baron Capital Clearing Agency is working to register itself as a clearing agent to service the small-cap market. There are over 6,000 companies within this marketplace and new companies are looking to enter every day. BCCA will implement a streamlined model that will approve the majority of penny stocks for transfer through a centralized, automated system similar to the electronic system they are being locked out of today.

http://www.baroncapitalenterprise.com/index.php/bcca