Clearing large certs through transfer agent. I ca
Post# of 11039
Posted On: 11/28/2015 11:07:10 AM
Clearing large certs through transfer agent.
I can not use actual accts as an example that directly relate to the problems with CRGP. This is purely an example of an account not directly related to CRGP where a sub acct is set up in the name of a significant share holder (debt holder) and how the shares are electronicly transferred to the clients acct with a new cert being written for the balance of the share owed.
That's how the transfer agent then knows what shares are in the OS and which shares are in the float.
Of course if Etrade processes the Cert using their clearing house and credits their clients acct with shares before the transfer agent can process the cert, then no one knows how many shares are actually in the float.
Now try to picture this;
The Certs being processed through T.A --> CORS are being paid
The cert(s) going through E*Trade Securities --> E*trade Clearing --> E*Trade Securities DOES'T get paid...
It takes 15-30 days for those shares to go back through the TA and out CORS before they even get added to the float.
If you look at the chart the HALT took place almost exactly 30-days after the sudden rise in volume.
IMO this process was by passed by E*Trade
I can not use actual accts as an example that directly relate to the problems with CRGP. This is purely an example of an account not directly related to CRGP where a sub acct is set up in the name of a significant share holder (debt holder) and how the shares are electronicly transferred to the clients acct with a new cert being written for the balance of the share owed.
That's how the transfer agent then knows what shares are in the OS and which shares are in the float.
Of course if Etrade processes the Cert using their clearing house and credits their clients acct with shares before the transfer agent can process the cert, then no one knows how many shares are actually in the float.
Now try to picture this;
The Certs being processed through T.A --> CORS are being paid
The cert(s) going through E*Trade Securities --> E*trade Clearing --> E*Trade Securities DOES'T get paid...
It takes 15-30 days for those shares to go back through the TA and out CORS before they even get added to the float.
If you look at the chart the HALT took place almost exactly 30-days after the sudden rise in volume.
IMO this process was by passed by E*Trade
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