Stock Broker unable to sell shares

xylophone

Just to get this straight in my head can anyone tell me are DTC and CDI basically the same thing but covering different territory?

From a Wikipedia article


Registrars and CREST Depository Interest (CDI)

UK stocks are held by registrars who are members of CREST and are therefore integrated into the transfer of ownership. Irish equities and ETF securities are also settled directly through CREST members.[3]

For international stocks, CREST holds a pool of them in a local depository, such as Clearstream for German stocks and CDS for Canadian stocks. CREST then issues a CDI to each holder of the security, which can then be transferred in CREST just like a UK equity. This is similar to the depositary receipts issued in other countries. However, restrictions apply to CDIs. Many are not withdrawable or depositable into/out of CREST. This is because a CDI is an electronic reflection of the underlying security held in the domestic (country of origin) market. The security provided by CDI are "international securities" in deed poll which includes security through equity shares, Eurobonds, domestic bonds and depository receipts. International securities must be eligible to be held within or through a CSD, which includes Euroclear, DTC, SIS SegaIntersettle (the Swiss clearing system) and any other national or international central securities depositories from time to time specified in the CREST International Manual.[4] The economic rights are not affected by the use of the CDIs.

How does it work?
To take the US as an example. The electronic settlement system in the US is called DTC. If a shareholder holds electronic stock in the US they will hold their securities electronically in DTC. In reality, they will hold the securities via a custodian, so the custodian's nominee details will appear on the company's register. This is known as holding stock in the 'domestic' market. Securities held this way can only be traded domestically i.e. in the market of the country of origin. If the shares are listed in more than one market (for example in the US and in the UK) a shareholder who wants to trade his securities within CREST outside of the US 'domestic' market can instruct his custodian (in this example the DTC) to transfer his securities to the CREST account within DTC.

Restrictions apply, only securities that have a UK quote can be transferred to CREST's DTC account. CREST is a member of DTC. Once the securities have been transferred from the shareholders account within the DTC and into CREST's account CREST will 'create' the CDI within the CREST and the CDI will appear in the shareholders account within CREST where the CDI can now be traded in the UK market.


https://en.wikipedia.org/wiki/Canadian_Depository_for_Securities

The Canadian Depository for Securities Ltd. (CDS Limited) is the world's second largest post-trade financial services company.

Internationally, CDS Clearing settles over 41 million cross-border transactions with the U.S. annually,[2] and has custodial relationships with The Depository Trust Company (DTC),

Thickie

Thank you for that.

Never having come across this before are we being unreasonable in thinking that as our broker bought the shares and they are now sitting one of their nominee accounts, so we have no proof of ownership, it has to be their responsibility to facilitate the sale?

Linton

Thickie wrote: »

Thank you for that.

Never having come across this before are we being unreasonable in thinking that as our broker bought the shares and they are now sitting one of their nominee accounts, so we have no proof of ownership, it has to be their responsibility to facilitate the sale?

You should be able to transfer your shares to another broker who does trade on TSX. HL seems to be a possibility. Suggest you phone them.
https://www.hl.co.uk/shares/share-dealing/overseas-share-dealing-service

Thickie

Thanks but they are the broker. Killick thought they could help and it was on their desk for a month but then they came back and said they weren't able to help and when I spoke to Youinvest yesterday they said no straight away.

[Deleted User]

Hi,


Interactive Investor might help,



'Access 17 stock exchanges, including the US, Europe, Canada and Australia'.


Edit: Found this on their site.

Thickie

Will give them a try, thank you

Heedtheadvice

...or, as an alternative if you cannot otherwise make progress, try Pilling stockbrokers in St Anne's square,Manchester (they have a web site
http://www.pilling.com/About-Pilling-and-Co-Independent-Stockbrokers.htm). Tel. 0161 832 6581


Not sure if they can deal for you (they do trade overseas securities) but if they can they are great to deal with and no doubt (from personal experience) would give you great advice in this situation! They are clear, straightforward, and explain things if that is needed. When you phone up you will normally be dealt with by one of their brokers and there are normally no delays in getting through to them!


Apart from being a customer getting many a year's satisfactory service I have no other connection with them.

kidmugsy

I second that: we've dealt with Pillings and been pretty pleased.

Thickie

Thank you. We are currently waiting for the broker to confirm which market the stocks are on, as they have spoken about both Canadian and Australian, not that they have actually been returning our emails for the last 2 days, then at least we can give the new broker correct information.

Thickie

Hi
So a week later we have a response from the CEO that he is looking into our case and will get back to us. In the meantime Killick who thought they would be able to sell the shares have given this as the reason they couldn't assist us:


"The shares are held in the US on a deactivated ISIN. We advised Hargreaves we could hold the stock in Canada and Australia – however, they couldn’t transfer across to one of the active ISIN’s."


Can anyone tell us what this actually means so that when the CEO does come back to us (still forever optimistic!) we know we're not being fobbed off please?


Thank you