Ann: DTC Eligibility Approved, page-132

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BarrelSitter

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04/02/22

11:44

Post #: 59354263
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Originally posted by PetterH: ↑

If an issuer is not DTC eligible, then its shares cannot be transferred between brokerage accounts electronically, which basically means its shares cannot be traded easily. Major Exchanges such as NYSE and NASDAQ require DTC eligibility. Other Platforms such as the OTC Bulletin Board and the Pink Sheet markets do not. Only a DTC participant can request that DTC make a security eligible. Most large U.S. broker-dealers and banks are DTC participants. Once an issuer has been approved for trading by FINRA, they must apply to DTC for their initial eligibility to trade. If DTC approves the application they will hold all of the issuer’s free-trading street name shares on deposit. As with a Form 15C-211 submission to FINRA , an issuer cannot make a direct application to DTC for eligibility. The issuer must have a relationship with a broker-dealer or other financial institution that is a participant and will sponsor the eligibility process. This firm is also known as the “market-maker”. They will carry the initial position in inventory on behalf of their firm.

not all companies get approved. But every one who does has a huge advantage and exposure other OTC and Pink listed stocks do not have access too. You can dumb it down if you want, but don't make up your own answers. DYOR

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Hi Petter,

Someone earlier speculated that Mellon sponsored BrainChip for DTC eligibility. This would mean that Mellon are the "market-maker" carrying the initial inventory on behalf of BrainChip.

The fact that Mellon are the depository bank for our ADRs would add weight to that proposition:

https://brainchipinc.com/investors/

Could this explain some of those unexplained after market share transfers which may have coincided with NY businesss hours?

BRN Price at posting: $1.71 Sentiment: Buy Disclosure: Held
26 Upvote

0 Great analysis

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