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| Alias Born | 04/15/2008 |
Friday, August 23, 2013 11:47:11 AM
ooh yes they do... never underestimate the power of a DTC chill...
Chills and freezes can be imposed on securities
for more complicated reasons, such as when DTC
determines that there may be a legal, regulatory, or
operational problem with the issuance of the security,
or the trading or clearing of transactions involving
the security. For example, DTC may chill or freeze a
security when DTC becomes aware or is informed by
the issuer, its transfer agent, federal or state regulators,
or federal or state law enforcement officials that an
issuance of some or all of the issuer’s securities or
transfer in those securities is in violation of state or
federal law. If DTC suspects that all or a portion of its
holdings of a security may not be freely transferable
as is required for DTC services, it may decide to chill
one or more of its services or place a freeze on all
services for the security. When there is a corporate
reorganization, DTC will temporarily chill the security
for book-entry activities.
When DTC chills or freezes a security, it will issue
a “Participant Notice” to its participants. These
notices are publicly available on DTC’s website at
http://www.dtcc.com/legal/imp_notices
.
When
securities are frozen, DTC also provides optional
automated notifications to its participants. These
processes provide participants the ability to update
their systems to automatically block future trading of
affected securities, in addition to alerting participant
compliance departments. DTC has
information
regarding these processes
on its website.
http://www.sec.gov/investor/alerts/dtcfreezes.pdf
Chills and freezes can be imposed on securities
for more complicated reasons, such as when DTC
determines that there may be a legal, regulatory, or
operational problem with the issuance of the security,
or the trading or clearing of transactions involving
the security. For example, DTC may chill or freeze a
security when DTC becomes aware or is informed by
the issuer, its transfer agent, federal or state regulators,
or federal or state law enforcement officials that an
issuance of some or all of the issuer’s securities or
transfer in those securities is in violation of state or
federal law. If DTC suspects that all or a portion of its
holdings of a security may not be freely transferable
as is required for DTC services, it may decide to chill
one or more of its services or place a freeze on all
services for the security. When there is a corporate
reorganization, DTC will temporarily chill the security
for book-entry activities.
When DTC chills or freezes a security, it will issue
a “Participant Notice” to its participants. These
notices are publicly available on DTC’s website at
http://www.dtcc.com/legal/imp_notices
.
When
securities are frozen, DTC also provides optional
automated notifications to its participants. These
processes provide participants the ability to update
their systems to automatically block future trading of
affected securities, in addition to alerting participant
compliance departments. DTC has
information
regarding these processes
on its website.
http://www.sec.gov/investor/alerts/dtcfreezes.pdf
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