Replies to post #5458 on NSS ~ Counterfeiting Stock ~ MM Games Played

[fourkids_9pets]

thanks for updating this list daily
i've asked someone i trust to check
out where USAA stands re: PENSON

will post that info to you when rec'd

==
4kids
all jmo

[Jagthetrader]

Is PENSON done?

http://www.securitiestechnologymonitor.com/news/-27911-1.html?ET=securitiesindustry:e2503:170458a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=STM_BNA_08302010_051211

[Olie77]

This information if great. Thank you.

Im trying to understand the chain of events..maybe you can help me.

We know that recently Penson discontinued electronic clearing for a number of non dtc elible securities due to FEES associated. Those fees are now to be passed on to the client and they are substantial.

Question: I'm having a hard time beleiving that Penson was eating these fees up until now. Im more inclined to believe that were somehow bypassing DTC and not incurring fees. Does ex-clearing come into play here? forgive my ignorance i'm trying to get up to speed on the clearing and settlement procedures.


In the Penson memo (May2) they say, "As Penson identifies additional securities that are Non-DTCC-eligible, they will bed added to the list..."

Is it possible they've JUST discovered they've been handling non-dtc eligible securities incorrectly?

I've seen MAJOR back-office screw-ups in my day..so I can't say anything would suprise me.

any insights on what's going on at Penson would be appreciated.

[overachiever]

The lesson to be learned from this is to stay away from stocks that are not DTC eligible. They are scams anyway. The clearing firms are no longer going to eat the excessive fees they have to pay to allow their clients to trade garbage. This has all been in the works for the last couple of years and now it is being implemented.

My questions to you: How can this be legal to impose such a fee with no notice or recourse? What can we do to trade our small stocks without such fees.

[fourkids_9pets]

just wanted to let you know
that you can add usaa to those
brokerages that self clear and
avoid penson :)

spoke with them <investment group> at length yesterday

disclosure: member of usaa <albeit not
their brokerage services since the 80's>

==
4kids
all jmo