Replies to post #26265 on Solidus Communications Inc (SLDC)

[BigBake1]

Some Penson clearing trading platforms will, just be aware you may get a separate bill in 3 to 4 weeks for clearing and settlement pass thorugh. These have been averaging around $200-$500. Zecco makes it clear they these can be as high as $700 per transaction and they take no reponsibility for the trade even if they say it is DTC eligible.

Zecco and Penson Clearing

Settlement Fees for Non-DTC-Eligible Securities

DTC, through its subsidiaries, provides clearing, settlement and information services for equities,
corporate and municipal bonds, money market instruments and other securities. In addition, DTC is a leading processor of mutual funds and insurance transactions, and provides custody and asset servicing for 3.6 million securities issues from the United States and 121 other countries and territories.

For various reasons, certain low priced securities are not DTC-eligible or have had their eligibility revoked. As a result, the settlement of these physical positions can carry significant pass-through charges for our clearing firm, Penson, including execution fees, DTC fees, deposit fees, New York window fees, and transfer agent fees. These fees, which can vary and may be substantial, increase the cost that Penson, passes through for clearing and execution.

Customers who trade non-DTC-eligible securities are responsible for these charges, which can be as high as $700.00 per trade. Orders that require executions with multiple contra-parties will result in settlement fees for each separate transaction. Please note that neither Zecco Trading nor Penson mark up any of these fees before they are passed through to customers.


https://www.zecco.com/forms/penny-stock-disclosure/DownloadForm.aspx


What really hurts are these statement towards end:

It is your responsibility to investigate the eligibility status of a low-priced equity before trading it. You may consult the Known Non-DTC Eligible List in our Forms Library or contact the specific company whose equity you intend to trade to confirm eligibility. Please note that there is no guarantee that the Known Non-DTC Eligible List will contain a complete and updated list of non-DTC-eligible stocks. This information is provided on a ‘Best Efforts' basis.

This states you are on your own and if our brokers tell you that the security is DTC eligible we are still not reponsible for the fees imposed upon you for your poorly informed trades. Without clear information available from one single well known source it is kind of crappy of them to expect the customer to be informed of DTC eligibility, we have Mikey's list which is accurate. But many have no clue on how to get the info from the DTCC website.

So if that were not bad enough you have some people crowing about volume spikes and how these chilled stock are perfect for playing still..lol.. ok well if one trades through Penson you best be aware of this as Mikey has put it up several times and it is about to get worse.

The NSCC Illiquid Requirement is applied to Penson when one customer (or more than one customer in the aggregate, across the totality of customers of Penson’s correspondents ) whose account is carried by Penson sell more than 25% of the average daily trading volume of a security over the last rolling 20 business days. The amount of this requirement depends on the percentage of the ADV (Average Daily Value) represented by the open sales. The requirement has very little relation to the value of the trade, and is generally at least ten times the trade value and may be as high as one hundred times the trade value, or even more. This requirement is incurred even if the customer owns the shares and even when Penson has these shares long in its DTC account.

They are now changing this to read exceed 25% of average daily volume over THREE DAYS and you can be slammed with this ridiculous fee, it is much larger than that pansy ass $500-$700 fee, this will be in thousands if not tens of thousands. This is also looking to be adopted by a couple of other well known clearing firms in the future. So play accordingly, especially if it is a chilled stock.