Please be advised the enclosed list includes all Non-DTCC Eligible Securities deemed by Apex, however this list may be subject to change as the qualification of certain securities may change. DTCC deems a security non-transferrable when a security does not have a transfer agent or company contact for a period of six years or more. DTCC imposes monthly charges to all participants holding non-transferrable securities.
Effective March 18, 2013 , Apex will be instituting three new policies for processing physical securities:
1. Apex will eliminate processing receipt and deposit of equity securities trading on the Pink Sheets or Bulletin Board. Presently, free shares are received into customer accounts through three methods: Direct Registration (DRS), Deposit, Withdrawal at Custodian (DWAC) and physical receipt. Apex will no longer accept free receipt of Bulletin Board or Pink Sheet securities through any of these methods.
2. As trade settlement costs for securities not eligible for processing at DTCC have increased significantly, Apex will pass through costs for this process by charging for trade activity that results in a physical settlement in any non-DTCC eligible securities, which currently includes the securities on the enclosed list but is subject to change. The accounts subject to this charge will be those with a daily change in trade date position for securities that are non-DTCC eligible. Apex will evaluate trading activity in each account and identify activity that results in a settlement. Trading activity that nets to zero on a daily basis will not result in a physical settlement. Apex will process a fee of $150.00 in each identified account on trade plus one.
3. Apex will review incoming ACATs for these securities on enclosed list and may take additional action based on the review, including rejection of the incoming account.
Restricted securities or securities registered in client name and held on Apex's books and records can no longer be removed from the client account via a Non-Transferable or Penny for Lot request, clients can request to have the certificates returned to the account address of record, subject to the fee for the return of the certificates.
For further information concerning non-DTCC eligible securities, please contact MB Trading.