I have a question, I will be obliged if you spare your time and answer the question.
When a CUSIP get exited from CNS and future trades designated Trade for Trade" and “Suspension of DTC Services”.
Does that mean, your broker can charge extra fees in the name of physical settlement fees? or is it just, you have to wait for 3 days for clearance of trades before you can trade any further?
MIKP's CUSIP does not appear to have been added back to the NSCC CNS. It was stated in a legal notice from the NSCC to have been exited and designated trade for trade on 10/28/2011.
But there is no notice that it was added back. The only other notices are two Add/Delete notices when the ticker temporarily changed to MIKPD following the R/S and two Add/Delete notices regarding the suspension.
The letter MIKP received was in regard to lifting a DTC deposit chill only and did not address the NSCC T4T designation. IMO, MIKP continues to belong on the list of exited CUSIPs.
The PR Mark Newbauer issed when the deposit chill was lifted claims full "DTCC" eligibility is restored, which appears to be false based upon the above. He could have been technically correct if he would simply have claimed DTC eligibility.
The SEC suspended MIKP because of questions about the accuracy of its PRs and financial statements. This PR could have been one of the inaccurate ones.
A deposit chill is often placed when a stock becomes non DTC FAST-eligible, meaning it must be settled manually with paper certs instead of electronic book entry. It's good to have that chill lifted so it is again DTC-eligible, but if it's still T4T with the NSCC then saying it is fully DTCC-eligible (parent company of both The DTC and The NSCC) is false and misleading.