 |
Article by Craig V. Butler, Esq. |
After clearing the SEC and FINRA, DTC approval used to be a matter of course for a company ready to be publicly-traded, now it is an obstacle barring some companies from trading, what happened?
Imagine successfully navigating the 110 meter hurdles and crossing the finish line only to find another hurdle in your path at 115 meters? That is exactly what many smaller issuers are encountering. After successfully navigating their registration statement through the Securities and Exchange Commission and their 15c2-11 through FINRA, and actually getting a trading symbol for the OTC Bulletin Board, some smaller issuers are being told their shares cannot trade electronically due to a holdup at The Depository Trust Company (DTC). Not only is this holdup an aggravation for the company and its shareholders, it can be a very expensive one due to the fact the company is already subject to the reporting requirements of the Securities and Exchange Act of 1934, as amended ("Exchange Act"). What happened? Why has DTC-eligibility become a road block?
To view the rest of this article and many others you will need to be a registered member. Send us your registration info and we will take care of your registration.