Baron Capital

Clearing Corporation

 

Baron Capital Clearing Corporation is being created to provide an efficient means of clearing and settlement of securities primarily focusing on the Small Cap marketplace.

 

Depository Trust and Clearing Corporation (DTCC) (which is owned by the three major exchanges NYSE, AMEX and NASDAQ) provides clearing for 90% of all US securities, they are also the clearing house for all shares held in street name under CEDE & Co. 

 

DTCC recently along with the industry in general has been making it extremely tough for a Small Cap company to operate in the public markets, if a company does any corporate action that requires a new CUSIP number, a “Chill” is often placed on the new CUSIP number meaning it is not “DTC Eligible”.  This causes a problem for investors to trade securities. When this happens, costs for execution of a trade increase, money can be withheld for a longer period of time, and settlement date takes longer.

 

Baron Capital Clearing Corporation is working to register itself as a clearing agent to service the Small Cap market.  There are over 6,000 companies within this market place and new companies looking to enter everyday.  BCCC will implement a streamlined model which will approve the majority of penny stocks for transfer through a centralized, automated system similar to the electronic system they are being locked out of today.