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DTC Chill?

post #1 of 23
Thread Starter 

I use TD Ameritrade and for last few days I have noticed this error for buy orders of certain securities - Order rejected due to DTC chill on settling this trade. Any one know what this is about? Is this specific to the broker because I can see these securities being traded on heavy volume and going up while I miss the boat!

 

Thanks.

post #2 of 23

A DTC chill puts trading restrictions on a stock. This is to combat possible manipulation on the stock price.

 

Im not completely clear on the details or why the chill is on your particular stock, but lets say the SEC gets word that a big promo is about to hit penny stock WXYZ, they can put a DTC chill on it that will prevent those shenanigans.

post #3 of 23
Thread Starter 

Thanks for your response StockJock-e!

 

But then if SEC puts a restriction on the stock, how is still being traded? This was the case today with COIN; as you can see it was heavily traded today but I couldn't get in due to this restriction. Is there a way around it?
 

post #4 of 23
Quote:
Originally Posted by bondforever View Post

Thanks for your response StockJock-e!

 

But then if SEC puts a restriction on the stock, how is still being traded? This was the case today with COIN; as you can see it was heavily traded today but I couldn't get in due to this restriction. Is there a way around it?
 

Im not really clear on exactly what is restricted, but when you place a trade for some penny stock, you order goes through a clearing firm that either makes a market in penny stocks. The DTC chill could limit a particular firm from trading a specific stock. It could be that TD Ameritrade is on the chill list in order to protect their clients from getting into a shitty situation.

post #5 of 23

Yeah this is upsetting to me too.    I tried the same thing this morning (not on COIN) and got the same message.   It is possible that it is the volume we are trying to buy?   It would be nice to get an answer from TD Ameritrade..  hmmm maybe i will instant chat and try to see if i can get a straightforward answer.

post #6 of 23

I opened an account with Etrade because of this. Ameritade is not good for trading high risk pennies. 

post #7 of 23
I did get a non commital response from ameritrade apologing but dont own responsibility they say dtc is reason..
post #8 of 23
Guess that a co could easily be blackballed with this policy
post #9 of 23

I have been patiently waiting for weeks to try and get in on MJNA using tdameritrade.  when i first received the message, "Order cannot be processed due to a DTC chill restricting the ability to transfer a security and settle the trade", I called tdameritrade to try and get answers.  they told me there was nothing they could do, as the DTC has put a restriction on the stock and not them.  I waited and waited for the "chill" to end, trying again periodically over weeks while the stock kept moving up.  I finally got tipped off that there was infact no "DTC chill" and many other sites will allow you to purchase MJNA without a problem.  Tdameritrade just lost a customer, as they cost me alot of money for wasting my time.  I don't know if they are legally allowed to make up bogus excuses for not letting you trade a stock, but I feel like a class action suit may be warranted.    

post #10 of 23
Quote:
Originally Posted by gbillig View Post

I have been patiently waiting for weeks to try and get in on MJNA using tdameritrade.  when i first received the message, "Order cannot be processed due to a DTC chill restricting the ability to transfer a security and settle the trade"

 

They are doing this to protect their clients.

 

The only reason MJNA is rallying is because it has the word marijuana in its name. The stock is in the midst of the pump and dump by a savvy group of promoters taking advantage of the fact that thousands of novice investors are running to google and typing in "marijuana stock" and thinking they have done sufficient research.

 

 

post #11 of 23

yes, it may be true the recent surge is due to overly excited or novice investors.  however, if one can predict that surge regardless of the cause, why would you not try to take advantage of it to make some money?  that's what the stock market is for, right?  that being said, it's no surprise the stock is taking a dive now.  however, i have done my research and believe in the long term value of the stock over years.  MJNA is doing all they can to wain the faith of investors by releasing financial reports and hiring an auditing firm to show that their business isn't all smoke and mirrors.  while the current CEO has past ties to a questionable company, there's no reason why this business can't succeed legitimately.  What other legitimate business do you know of that's profiting off of marijuana?  last time i checked, there are at least a few people in this country that use marijuana and there's a couple bucks to be made. perhaps uncle sam is finally willing to accept the tax revenue generated from it's sale. 

post #12 of 23

TD Ameritrade wasn't looking out for shenanigans when they allowed me to purchase GCOG at .003 per share. Me thinks they do not approve of the stock, period!

post #13 of 23
Quote:
Originally Posted by gbillig View Post

I have been patiently waiting for weeks to try and get in on MJNA using tdameritrade.  when i first received the message, "Order cannot be processed due to a DTC chill restricting the ability to transfer a security and settle the trade", I called tdameritrade to try and get answers.  they told me there was nothing they could do, as the DTC has put a restriction on the stock and not them.  I waited and waited for the "chill" to end, trying again periodically over weeks while the stock kept moving up.  I finally got tipped off that there was infact no "DTC chill" and many other sites will allow you to purchase MJNA without a problem.  Tdameritrade just lost a customer, as they cost me alot of money for wasting my time.  I don't know if they are legally allowed to make up bogus excuses for not letting you trade a stock, but I feel like a class action suit may be warranted.    

 

Are you being compensated by MJNA for pumping the stock?

post #14 of 23

So does Etrade allow purchasing DTC chill stocks???

I had the same problem trying to make a purchase with TD

post #15 of 23

I'm pretty sure any site other than TD will let you. I bought in on Scottrade.  There actually is NOT a DTC Chill on MJNA, I checked with the DTC myself.  TD made up this excuse to deny their customers ability to trade it for some reason.  My gripe with them is that they lied about the reason.  They told me it wasn't possible to buy in due to the chill and I missed out on a big opportunity because i believed them.  Had they told me the truth, i would have gone to another trading site sooner. 
 

post #16 of 23

Do you really think MJNA will be a pump and dump stock? What would your advice be for a novice looking to invest in the medical marijuana market?  I am newer to the market and have done alright so far and usually go further than a google search before investing.  I know that MJNA has made some interesting deals lately that  would think would work toward their value, however, I am new and I have seen them declining a lot within the last few days.  I am respectably asking your opinion on this stock and which stock you would go with for investing in the medical marijuana and even recreational markets? 

 

Thanks,

AP

post #17 of 23

I was pissed off to say the least today due to my TDA trade message "Order cannot be processed due to a DTC chill restricting the ability to transfer a security and settle the trade."

 

TDA told me that “The Depository Trust Clearing Corporation” (DTC) Chill is a freeze on buying high risk securities but not selling. TDA also said that the DTC is protection for the market because high share buys and manipulating the market by making it go up or down depending on the column.

 

 

Here is some info on the DTC Chill.

http://www.investopedia.com/terms/c/chill.asp

 

Hope this helps.

post #18 of 23

ToniTP, To answer your question there is NO purchasing of DTC Chill stocks. That is a misunderstanding. Trading companies like Etrade and TDA have to abide by the FCC rules and regulations. The FCC protects the market from false or misleading companies/stocks in the market, therefore, issuing the DTC chill.

 

Definition of DTC by http://www.investopedia.com/terms/c/chill.asp

"The DTC is “The Depository Trust Clearing Corporation” acts as a clearinghouse for stock exchange securities, settling trades in corporate and municipal securities. If the DTC has cause to be concerned about a specific security currently processed through its system, it may place a "chill" status on the security. This will restrict brokerages' ability to transfer the shares or units of the security through DTC until the security's issues are cleared up or it ceases trading on the market."

Hope this helps...

post #19 of 23
I'm in your same boat. Two weeks ago I had to take out a BIG chunk of cash from my beloved NOKIA ($2.80), which I was purchasing religiously for the last 2 years......sigh. But at least my TSLA ($101) is doing well.

...but need to make up my NOKIA??????.....Hey!!! As far back as I can recall, being a Native Californian, weed/pot/joints/bongs/...you get the point, have been around my whole life, and I started trying Cannabis a little late in my life......18yrs old. So, shit, I, my friends, some aunts and uncles and cousins, have been supporting this Industry for a long, long time.

And now, ....they are starting to make my Cannabis legal.....again. The writing is on the wall....they couldn't take it away, they tried, they failed. They tried to smear its face........but guess what, they can't prove its harmful ! They lost. Game over. But now...they have to find a way to move forward, but make their Govt / Cronie friends rich on the way. So, it will take time....and, it has forward momentum, and......it always will move forward because it's good shit !.....just ask Snoop Lion.


Loooooocorruptofficialooooooocroonieoooooooong term. Yeah. The Industry will survive and prosper. The questions is...........which company to invest in.....long term. Pick the ones you use products from. The writing is on the wall.
post #20 of 23
would this be the FCC which works for the Federal Govt?...that company that allowed this.......how shall we call it?.....a recession. That FCC?
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