DTC Chill?

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.

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.

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?

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.

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.