DTCC’s Issuer Chills: Unfreezing Sparks Debate

Even after a security becomes DTC-eligible, the DTC can always decide to limit or terminate its services, to “chill” an issuer, it can restrict some services or withdraw shares.

A “global lock” or freeze,  it terminates all services.

“The reality is that microcap issuers lose DTC’s services for two primary reasons: illegal issuances of free-trading securities based upon flawed tradability opinions and fraudulent investor relations activity,”

 

Curated from DTCC’s Issuer Chills: Unfreezing Sparks Debate