Ole Fart Reality Room

[jbsliverer]

Was CBAI on a "Global Lock" and then had that removed or just on a "chill"? It is possible (at least theoretically) to have a Global Lock removed, but still be chilled and designated "trade for trade".

As I understand, the Global Lock is just a full chill version where all DTCC services are denied or restricted and a "chill" will be only certain sevices like WT's or most common kicking the stock out of the CNS system (designating trade for trade).

That is where the issue comes in. Penson says the hell with them completely and risks are of other in house brokers following their lead and do with some stocks.

As long as the volume stays low (which causes lack of liquidity for traders), I believe they are more inclined to handle certain chilled stocks. But when you get regular heavy volume or trading with dubius promoted pinks with their erroneous finances and share structure, some brokers could and will quickly put their own "chill" on.

Hundreds or thousands of trades need to go through where literally only one trade was required before (due to being kicked out of the CNS). Many of the responsibilties or costs that go with that fall on the broker instead of the DTCC and of course may be passed on to the trader. Why Penson has decided to have no part of it.