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.
Just 1 more reason why BCAP could be a big player here. $BCAP