NSCC illiquid charges for buy or sell many otc stocks. Is a real risk ? Brokers really impose fees ?

[wic2021californiaxp]

``If you attempt to sell a number of shares greater than 10% of the stock's average volume over the last 20 days, you'll also be assessed a fee.``

`` The interest charges will then be assessed on an illiquidity requirement imposed on the clearing firm, which could be many times the value of the trade``

Has anyone here been charged for this type of fee ?

How long before the charge appears ? instant, 1 day , more than 1 week ?

 

[Fain]

``If you attempt to sell a number of shares greater than 10% of the stock's average volume over the last 20 days, you'll also be assessed a fee.``

`` The interest charges will then be assessed on an illiquidity requirement imposed on the clearing firm, which could be many times the value of the trade``

Has anyone here been charged for this type of fee ?

How long before the charge appears ? instant, 1 day , more than 1 week ?

Capital charges from the clearing house to the broker. Your broker could be under capitalized it sounds like if they want to charge this fee instead of just posting the collaterral

 

[maxinger]

It is a good experience trading illiquid stocks;
there will be many many sleepless nights.

 

[Fain]

Structural Idiocy on behalf of the US capital markets. OTC volumes suffering huge.

 

[eastern_warrior]

``If you attempt to sell a number of shares greater than 10% of the stock's average volume over the last 20 days, you'll also be assessed a fee.``

`` The interest charges will then be assessed on an illiquidity requirement imposed on the clearing firm, which could be many times the value of the trade``

Has anyone here been charged for this type of fee ?

How long before the charge appears ? instant, 1 day , more than 1 week ?

which clearing firm/broker?

 

[otctrade]

I only got one charge like that back in 2012 with a small brokerage firm.

I don't think this will be an issue going forward because most illiquid and non-reporting companies have been delisted to the "expert market" which isn't tradeable on 99% of broker platforms anyway.

 

[wic2021californiaxp]

I only got one charge like that back in 2012 with a small brokerage firm.

I don't think this will be an issue going forward because most illiquid and non-reporting companies have been delisted to the "expert market" which isn't tradeable on 99% of broker platforms anyway.

how long before you receive a illiquid firm from brokerage firm after trade stocks ?

 

[Fain]

how long before you receive a illiquid firm from brokerage firm after trade stocks ?

Can be like a Week. They issue the charge manually to the brokerage, then brokerage probably manually charges the client.

 

[Sig]

Structural Idiocy on behalf of the US capital markets. OTC volumes suffering huge.

And yet the real word suffering none. Perhaps not such idiocy after all. Perhaps penny OTC stocks provide no benefit to the real world and everyone but the pump and dumpers and the rubes who get exploited by them are better off without them. Actually maybe the rubes are better off too, they just won't ever realize it.

 

[Fain]

And yet the real word suffering none. Perhaps not such idiocy after all. Perhaps penny OTC stocks provide no benefit to the real world and everyone but the pump and dumpers and the rubes who get exploited by them are better off without them. Actually maybe the rubes are better off too, they just won't ever realize it.

Companies are staying private longer and more OTC companies coming to Canada to list. I'm okay with the structural change.