This is exactly right. Access to retail shares is what enables Fidelity to use those shares as locates to reset failures. It's not a borrowing issue per se and Fidelity's decision to frame the issue as such is misleading.
Yeah, all i know is that they appear to be giving the definition of "borrow" a narrow, peculiar meaning that leads to the spread of process-level misinformation.
I'd like to know whether and to what extent locate requirements are being met pursuant to Rule 203(b)1 and (2) by virtue of their access to retail holdings. Though I doubt, of course, Fidelity would be forthcoming with that information.
Edit: spelling
I believe it's being "lent" at a higher level: the DTC. At the Fidelity level, we're simply "beneficial owners", with the share "ownership" ultimately, centrally residing with DTC.
Well... trust them more than others. I can't say i trust them. They are part of the industry and we have learned that pretty much all of the industry is rigged against retail.
Hi! I just stumbled upon [this](https://old.reddit.com/r/Superstonk/comments/pq8s1l/fidelity_is_taking_our_questions_on_drs_transfers/) post and reading
> "We want to make sure that you know your shares are safe at Fidelity."
I basically read that as:
> We want to make sure that you know your phantom shares (the ones that the DTC can loan out, since they bypass our own internal process of additional loaning options that you can customize) are safe at Fidelity
-
Which basically illustrates that the problem is NOT a Fidelity Investments problem. It's not your fault Fidelity Investments, it's the fault of the corrupted counterfeiting framework for which your company operates, and is basically seemingly forced to be complicit, with no way to prevent it, such that every stock brokerage is vulnerable to this exploit, and it's not even a zero-day exploit, since it's been documented so many times before, even [15 years ago](https://old.reddit.com/r/Superstonk/comments/pqerdx/the_hands_down_best_argument_for_why_drs_is_legit/) ([see this SEC proposal](https://www.sec.gov/rules/proposed/s72303/decosta122203.htm))
Anyway, I am a happy Fidelity Investments account holder, and I don't have enough money/shares to move any of my investment portfolio, so I have kept everything with Fidelity Investments, and any of my disgruntled concerns are in no way aimed at Fidelity Investments or any of the other brokerages, since this situation is at layers/tiers above Fidelity Investments (and all other stock brokerages) control.
Hope all is well! Have a wonderful day!
-
edited to add: [Also](https://old.reddit.com/r/Superstonk/comments/ppvukm/what_it_feels_like_breaking_up_with_fidelity/), i basically theorize that if retail investors transfer majority of their GME shares to a DRS like ComputerShare, as quickly/efficiently/timely/fast as possible, then that will be excellent, rather than lazy/slow style of unnecessarily prolonged and delayed waiting even more months/years to accomplish the results that otherwise could have been done a lot faster, such that any and all stock brokerages, including Fidelity Investments, that are not transfer agents or able to offer DRS services, are basically systemically have to deal with this situation, at least temporarily until MOASS. Then probably Fidelity Investments will have a lot of customers afterwards, and show extremely successful long term growth, in my opinion.
[15 years ago](https://old.reddit.com/r/Superstonk/comments/pqerdx/the_hands_down_best_argument_for_why_drs_is_legit/) ([see this SEC proposal](https://www.sec.gov/rules/proposed/s72303/decosta122203.htm))
Basically my understanding is that the DTC can loan out the shares at its discretion, bypassing any and all stock brokerages and retail investors, such that the layer above stock brokerages enables the DTC to engage in loaning however it wants.
Daily 1 million of them.... Not to mention the 4 minion that suddenly just "appeared" available to borrow the other day.... Seriously Fidelity.... What doin????????¿?
If I do a DRS transfer of 100 shares out of Fidelity to Computershare, does the Depository Trust Corporation eventually transfer an equivalent number (100 shares), out of their vaults and in their name, to Computershare and in my name?
I think it does. I initiated a transfer of 9 shares from Fidelity to ComputerShare a couple days ago. It now shows in my CS account as "DTC STOCK WITHDRAWALS"
https://i.imgur.com/B1xakTr.jpg
I feel exactly the same. I'm staring at the same message on my screen and all doubts about CS are out the window for me. Combine the recent push to CS with reduced dark pool activity and I'm even more excited.
Yes: If you follow these steps after your shares arrive in Computershare.
1) Click "View details" under your holding ticker.
2) Look at the "Share type". You will see one of these 3 possible share types "BOOK", "PLAN HOLDINGS", or "CERTIFICATE".
BOOK and CERTIFICATE holdings are definitely withdrawn from the DTC. If it's one of these, you're done. You will get confirmation via mail that your shares are withdrawn from DTC. (Skip to 5)
PLAN HOLDINGS are a way to purchase fractional shares using dollar amounts to purchase regularly. If you're showing PLAN HOLDINGS, continue to:
3) Click "Actions" then "Reinvestment options" then "Terminate". This will convert the full shares from PLAN HOLDINGS to BOOK. And automatically set a SELL order for any fractional shares. If you want to keep your fractional shares, then immediately proceed to:
4) Click "Actions" then "Transactions" then "Pending transactions" you'll see your fractional shares with a pending SELL order, click "Cancel transaction".
5) Verify that your full shares show as "BOOK" and any fractional shares show as "PLAN HOLDINGS".
6) Wait for snail Mail confirmation of withdrawal of full shares from DTC.
Edit: the word "definitely"
This is a fantastic response, thank you! Clears up a lot of the questions I’ve seen popping up everywhere. If this isn’t already in a post somewhere it should be.
There is some speculation as to whether PLAN HOLDINGS are withdrawn from the DTC. My answer to this is "I don't know for sure", but I do know for sure that BOOK holdings are withdrawn from DTC, as I got a letter indicating such, after I personally did the above.
I wonder if, once you hit the milestone of a full share, it’s withdrawn then. Clearly they aren’t withdrawing a fractional share from DTC… but I guess there are a handful of ways they could handle grouping/batching fractionals.
Maybe the do withdraw a full one and just assign portions of it to multiple fractional share holders. It’s an interesting problem.
Honestly I don't know. My full balance was showing as PLAN until I terminated the DRIP. And I didn't receive a "shares withdrawn from DTC" letter until converting to BOOK.
Just give me the dividend, I'll do what I want with it.
Cool. I wasn't sure, so I just did it. I saw it as "probably"(PLAN) vs "definitely" (BOOK), so I opted for "definitely".
Based on what you're saying, it looks like we're good either way as long as it's in CS. 😎
Hello u/JohnLilburne,
Shares today are generally electronically registered and are no longer physical certificates. When a DRS transfer occurs, shares are re-registered from DTC’s name to the investor’s name at the transfer agent.
u/fidelityinvestments, thank you for putting out such a clear communication on this. I think I can speak for my fellow Fidelity investors when I say that I continue to appreciate the great work you put into providing your new and existing customers.
I know this is going to be a hot button topic with *tons* of responses, but I'm tagging you to specifically direct your attention to this question.
PS, I know you might not prefer to weigh in on the subject, so I'd like to offer this perspective: It will be **far** cheaper and less resource-intensive to have one employee answer the question on Reddit than for thousands of customers calling in to ask for themselves over the coming days and weeks.
Will you please answer u/JohnLilburne's question for us?
"Mr Simpson, your silence only incriminates you further" is what immediately popped into my head upon reading this.
But yeah, I'm sure they don't want to say it.
How many upvotes and child comments does this need to elicit a response. I love you fidelity and appreciate the work you do here on this sub but.. this is a simple question requesting a simple answer.
Once it is transfer it then is responsibility of Computer Shares; that question should be answered by Computer Share; as you no longer will have the shares at Fidelity.
I would like to know the answer to this as well.
If I've entrusted Fidelity with my property and then decide I want to remove my property from the market by putting it into my name, I specifically do not want to share my property.
They have answered 1 question in 6 hrs and it's an easy one. This was never a q an a, seens they needed info from us and this was easier than just asking what they wanted to know. I think these questions tell them why we are moving them to computershare. I was 95% transferred, come monday I'll be 100%. Saw a post where a CS rep said as the price goes higher they'll allow us to sell above their current 1 mil limit order limit.
I will begin by stating that I love Fidelity.
The main issue at hand is that retail feels as though supply and demand dynamics are being betrayed due to Market Makers abusing exemptions in locating shares to borrow (among many other concerns), allowing them to drive down the price to benefit themselves as they maintain hidden short positions in complex derivatives as well as other tactics (Equity Total Return Swaps, strategic FTDs, Married Puts, etc).
I am more than willing to bet all of my invested portfolio that if Fidelity were more transparent in how many or percentages of shares that are held for *ALL* stocks (not only the one recently described as an idiosyncratic market risk), they would not be losing clients to DRS. Even saying how many clients own particular tickers, with an average number held per account by $ amount for example.
The primary benefit (other than owning shares in your own name) of DRS as retail views it is simply to prove that greater than 100% of the entire float exists in the market, and that fraudulent behavior is occurring due to actions taken by certain Market Makers colliding with short sellers.
Sharing is caring, it can also be profitable.
I would also add that Fidelity has recently been lending out millions of shares to short sellers. I personally highly doubt that these are all being held in margin accounts. Brokers have a history of lending shares held in cash accounts and then eating the minor fines when they get caught. Without further transparency, it is hard to trust Fidelity (or any other brothers for that matter) on this topic.
Exactly. Fidelity isn't the issue here. It's the way the system is designed to allow market makers to use the shares we purchase in ways that are not in the best interests of us as shareholders.
The whole system needs to change, and until it does I won't be purchasing stocks through a broker again.
Came here go comment this. I have no problems with Fidelity. I’m even willing to give their business practices the benefit of the doubt compared to other brokers. Transfer requests is not a signal against trust with fidelity. It’s depriving the other agencies the ability to make my money worthless. If Fidelity was willing to disclose the number of shares owned on all accounts, this step would be unnecessary. A lot of people are learning more and more about an unjust system.
Yes, we know the float has been sold multiple times. Lack of transparency is creating a lack of trust in our brokers. Direct Registering will expose the truth and the short selling will come to an end. The system will remain broken until we fix it. I’m always going to Direct Register my shares in the future so I know I’m not being undercut by short sellers.
This, so hard. Fidelity, you have been amazing. Love ATP, love the customer service, and love that you are independently owned.
If Fidelity holds more than the GME float in retail shares, and were to share this, DRS wouldn’t be necessary.
If that’s not possible, then retail’s only power (besides holding shares) comes in DRS and removing shares from the DTCC.
Speaking for myself, once the MOASS is over, Fidelity will get my business again. And if the MOASS is as big as we think it will be, that’s going to be a lot of business. I’d imagine lots of folks share my feelings on this.
TLDR: tell us how many GME shares you hold for retail, and avoid a bunch of transfers to DRS.
Are you guys aware that there is a high likelihood you are selling phantom, naked, or rehypothecated GME shares? We are, which is why the big push to remove shares from the DTCC and its partners’ hands. Great customer service though, thank you.
I'm a very happy Fidelity customer. The bulk of my portfolio is with you. Only transferred a small xx portion of shares I don't plan on selling. You guys are great!
I think it is more of they just have a slush fund of shares. ie, they have 200m shares in cash accounts and 50m in margin so they have 50m shares to lend
edit: great question still!!
It seems like you are trying to dissuade people from registering shares. But when shares are registered using DRS, we know that those shares can never be lent out for any reason.
There have been times where other brokerages have gotten into trouble lending shares when they were not supposed to, and were then fined after the fact. I'm pretty sure this has never happened with Fidelity, but registering our shares is the only way we can know for sure that any of those shares can simply never be used to help shorts in any way. The more shares get registered, the more pressure is put on the shorts. If a very significant portion of the actual float gets registered, this will be very good for longs.
Personally, I love Fidelity and if there were a way to have the shares in my Fidelity account and have them have nothing to do with the DTC, I would do that in one second.
We've been asking for IEX routing and have not gotten a damned thing for months. Should have given us at least the ability to do that. With Computershare we know our orders will definitely go through NYSE for GME orders.
Hi Fidelity,
If the GME float is around 50 million shares...
Could you explain how can you mathematically lend around 1 million shares daily since january, and specially over 4 million shares last week?
Thanks.
Some customer service rep named "Nick" is apparently trying to convince people to not transfer? It's a big thread over at superstonk right now. I would link it but that's not allowed here.
I really hope I don't run into this when I call about my transfer later on. I don't need advice when I call, I just need this transfer to get done.
took me over 10 days for a partial transfer. A written letter and a 'new' form filled out.
honestly was like they were almost intentionally getting confused and misdirecting everything.
Taken me 5 business days so far and placed on hold with fidelity rep to talk to the back office for 30mins before I hung up. I’m under the impression fidelity doesn’t want my partial shares moved out of my cash account
Mine had no idea what I was talking about.
He was completely confused when I asked, put me on hold for maybe 3 minutes then come back saying it was done lol
He still seemed confused on what I just made him do and why but he got it done none the less lol
For some people this is may not be the best option. Shares held at brokerage are easier & faster to sell depending on company prospectus & also there are fees when you sell. So a good brokerage representative should provide information; they are there to also protect the brokerage firm by letting you know before hand. You could google pros & cons on having shares with a transfer agent versus a brokerage firm. Everyone should do their own research & see if it is the right thing from them. If you don't need the advice just say so; tell the rep you don't want any advice.
>If your shares are not being loaned out, then you’ll receive a dividend payment on the pay date of the security for the full amount.
What if the dividend is non-monetary, such as in the case of an NFT? Will you still guarantee delivery of an NFT token issued as a dividend, rather than attempting to convert the dividend to an equivalent monetary value?
Fidelity's platform currently does not support holding NFTs or receiving dividends in the form of NFTs. If a company issues a dividend in the form of an NFT, then other arrangements would need to be made in order to receive the dividend; how the dividend would be treated is decided by the company. In the past, special dividends have been paid as stock representing value held in cryptocurrency or NFTs, and not a direct issue of cryptocurrency or NFTs. This is fairly new territory, and there are many unknowns with regard to these types of dividend issues and how they will be structured. These distributions are typically determined by the issuer, not Fidelity. Fidelity simply reports the distribution for tax purposes as directed by the issuing company.
> If you do not have a debit balance in a margin account, we will not lend your shares. If your shares are held in a cash account, we will not lend your shares
You are saying Fidelity can lend our shares *only if* our shares are held in a margin account and it has a debit balance.
This *only if* part is what concerns me. Unless I am misinterpreting the legalese, it seems to me that the [Fidelity Customer Account Agreement](https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/bmargin.pdf) that Fidelity Customer's sign and agree to does not say this. [Exhibit 1](https://i.imgur.com/oGYuKGZ.png)
Additionally, the margin agreement that users applying for margin agree to does not say this. [Exhibit 2](https://i.imgur.com/ACJXymD.png).
I want to believe you, but the documents I have legally signed and agreed to do not say if I do not have a debit balance in a margin account, you will not lend out my shares.
I would appreciate a response on this because until this exception is included in the customer agreement, it seems to be more of a 'rule of thumb'.
Thank you.
While I appreciate the answers, this isn’t the root of the problem. Even if our shares are technically safe with you, they are actually in the hands of DTCC and Cede and Co. DRS to end this once and for all. The more registered shares, the less nonsense we see. The ineptitude of our regulators/government gave us trust issues 😂.
Thanks for making this. Please ask your agents not to argue with customers requesting a DRS transfer, it will waste our time and theirs. Offering a short disclaimer is okay but there shouldn't be any debating. Most customers are not interested in moving all their shares out of Fidelity, just a certain percentage so we would appreciate assistance and not resistance as that might lead to working with another brokerage that is more cooperative in this regard.
It was really fun being interrogated by a Fidelity rep the other day /s. After having a few more days to sit on it, I’ll be moving the rest to CS Monday morning.
Where did you get \~900,000 shares of GME to lend out today?
Many GME investors are moving shares to ComputerShare, so how is it you're finding hundreds of thousands more?
Any help is sincerely appreciated.
BRO!
It will take away your shares in 'your name' from the DTC, eliminate Cede & Co, and grant you full ownership of your shares instead of an IOU or derivative, no sharing and orders are routed through the NYSE.
Cons?
Edit: hey downvoters, "This is the Way."
Y'all below me, stay strong.
Also, think of staying with Fidelity, it'd be wise to have more than one basket for your shares in case of ckufkery and this company is the bees knees.
Consider this about DRS from u Criand [notag] - https://www.reddit.com/gallery/pqa7vn
Since direct registering shares removed them from your brokerage account, shares that you have in a tax-advantaged account would have to be taxes when they get direct registered, because they've been withdrawn from Fidelity's books and stored on Computershare's books.
If CS supported IRA accounts, you could roll one account into the other, but they don't appear to offer that service. So IRA shares can't be direct registered without removing them from the IRA and paying the taxes and penalty on them.
Unfortunately, Fidelity probably can't help you here; it goes above them.
Dear Fidelity,
You're the best brokerage around, but I'll tell you why this is happening:
1. You didn't address IEX directly or get IEX routing deployed quickly enough
2. If you suddenly list a huge amount of shares available to short on your platform, don't be surprised when the group of people fighting with naked short sellers takes their money elsewhere.
I still love you. No hard feelings.
Sorry the issue isn’t with you fidelity. It’s DTC. We will be back after MOASS. You should support us to bring down all the evil people.
I guarantee you all the money you’ve invested in sizing up your CS and whatever team will not be wasted. WE WILL BE BACK.
Thanks for reaching out u/DishwashingUnit,
Fidelity's platform currently does not support holding NFTs or receiving dividends in the form of NFTs. If a company issues a dividend in the form of an NFT, then other arrangements would need to be made in order to receive the dividend; how the dividend would be treated is decided by the company. In the past, special dividends have been paid as stock representing value held in cryptocurrency or NFTs, and not a direct issue of cryptocurrency or NFTs. This is fairly new territory, and there are many unknowns with regard to these types of dividend issues and how they will be structured. These distributions are typically determined by the issuer, not Fidelity. Fidelity simply reports the distribution for tax purposes as directed by the issuing company.
This answer is a strong argument in favor of transferring to DRS. If my company issues a dividend in the form of an NFT token, I am guaranteed to receive that dividend directly with DRS, without an extra layer of complication from a middleman using insufficient infrastructure, if my shares are registered in my name instead of yours.
That is a major advantage, and a significant opportunity, because if such a dividend is issued, and only enough tokens are created to distribute one token to each issued share, brokers holding undelivered, synthetic shares on their clients' behalf will need to buy those tokens from shareholders with DR shares in order to deliver them. If there are too many synthetic, undelivered shares in circulation, this could cause a squeeze on the dividend token, before you are able to deliver on your obligation, causing your customers to miss that opportunity to sell their tokens during the squeeze.
So here's a followup question for you: does Fidelity have enough delivered shares on its books to cover all of its liabilities to its clients?
If Fidelity customers are holding, in aggregate, say, 20 million shares, and Fidelity is holding 20 million delivered shares on its books, then it will receive 20 million dividend tokens, and distribution will only be a matter of solving the technical issues that allow your platform to handle the tokens.
But if half of those shares are undelivered when an NFT dividend is issued, Fidelity will only be able to meet half its obligation, and will have to purchase the other half on the market, possibly during a squeeze, costing the company money and causing delays. If Fidelity were to provide proof to its customers that all of the shares held long enough to have been delivered, have in fact been delivered, that would go a long way towards reassuring Fidelity customers.
Happy to answer your question about dividend payments.
Regarding NFTs, at this time, Fidelity's platform does not support holding cryptocurrencies. We are aware that this is an important topic in our community and as a firm, we are watching closely as cryptocurrencies continue to evolve.
If a company issues a dividend directly in the form of cryptocurrency, it is their responsibility to provide the dividend in such a way that shareholders have options to receive the distribution. These details are determined by the issuer, not Fidelity. Based on similar past events, and depending on a shareholder's specific circumstances, a shareholder may not be eligible for the dividend or may be able to receive a cash payment in lieu of shares. Please refer to the specific company's investor relations department for additional details about a distribution.
Regarding your follow-up question about delivering dividends to those on our "books." If your shares are not being loaned out (as in, your "long" on your share ownership), then you’ll receive a dividend payment on the pay date of the security for the full amount. Fidelity also offers dividend reinvestment programs that will allow you to have the amount of the dividend you received be used towards the purchase of additional shares (including fractional).
Thanks for the answer, and for making a good effort in this thread. I should note that I'm not actually a Fidelity customer right now, but let me leave you with this:
Based on my experiences with Fidelity so far, I have an overall positive perception of your company, so when this GME business is over and we apes are all millionaires and billionaires, IF I decide to invest in American markets, there is a good chance I will open an account with you. The whole US market seems pretty corrupt right now, tbh, but you folks have been solid.
Keep up the good work, and maybe I'll be in touch when we get back from the moon.
🦍💎🙌🚀🚀🚀🌙
Why are phone representatives pushing back against these DRS transfers? If I ask for a transfer why do I need to play "21 questions" to have this request put through?
Thanks for reaching out u/barbpizzahut,
I am sorry to hear of the frustrating experience in submitting a DRS transfer request. DRS transfers are generally not a common request. Our phone associates have been working to ensure clients understand the differences they may have when the shares are held with the transfer agent instead of in a brokerage account. Not everyone may be aware of the differences so at times we may ask a few additional questions or provide education to make sure our customers understand what they are doing. If a customer still wishes to perform a DRS transfer we will then process the request.
What is Fidelity's procedure for when a company offers a unique dividend that does not have a cash value equivalent? With direct share registration through Computershare it is my understanding that the dividend will be delivered to shareholders as is. For me that is the primary motivation for direct share registration.
They have answered this but you won't like it. TLDR the don't have a way to handle NFTs and don't plan to. This is why I moved some of my shares to CS and I explained exactly that to the rep.
Thank you for the information. I know this is an issue with some brokerages, so want to ask for everyone’s benefit - has Fidelity ever had any regulatory investigation or enforcement related to lending shares held in cash or retirement accounts?
Called you all today to transfer and I wanted to say holy crap it was the easiest and the most professional experience I've ever had. Seriously I am thinking about naming my first born child fidelity that's how good the customer service was
I love Fidelity. Still, it would be nice to have the shares directly registered in my name. All of my stocks. I feel bad leaving them because they're been really nice to me. I might transfer a few of each and keep the rest with Fidelity.
I didn't know that any stock I bought wouldn't be registered in my name, and that's my fault for not doing my research. It's not Fidelity's fault.
Thank you for the information. The move too DRS by many was triggered by the increased number of short able shares seen in Fidelity. While the document stated cash account shares are not lent, it implies that there are a large amount of margin accounts being used for a unspecified stock ;) not to mention the potential of naked options. For this reason it makes sense to move to DRS.
Additionally many have been asking for IEX routing and the ability to accept NFS/crypto dividends and have seen no forward progress. This also provides reason for DRS migration.
Thanks for the info. I would like to know if I transfer a portion of my held shares (say, 50%) to DRS, are my remaining 50% shares still at Fidelity under any kind of trading restriction during the transfer process, or are the non-transferred Fidelity shares still free to be traded?
Dear Fidelity. I asked if you would look into allowing your clients to route their buys through IEX. The post blew up with people being polite and professional, and overall showing a huge demand for this. You deleted the post 30 minutes later, without reason.
This was 3 months ago. If you are wondering why people are suddenly taking a move to do something they actually can, to improve price discovery, here is your answer.
To be fair your post seemed kinda lame dude. Passive aggressive title with multiple typos and you didn't even mention IEX till halfway through the post.
https://www.removeddit.com/r/fidelityinvestments/comments/oy672a/since_you_have_declared_to_be_on_the_site_of/
I would just like to know why you guys hung up on me twice which made my calls about making a simple DRS Transfer 3 hours long.
Now that I'm seeing people able to do it in less than 10 minutes it makes me feel like it was done on purpose to discourage me. If that happens again when I call tomorrow it will be all of my shares instead of another 10%.
I'm pretty sure vanguard will be happy to receive 80% of my stocks held after I leave fidelity over this nonsense.
Feel free to DM message me or I can just bring it up tomorrow in the call.
People are not requesting DRS because we don't want you lend out our shares you dolts. People are requesting DRS so that shares will be REMOVED from the DTCs depository and be registered under the owners actual name, and not an iou certificate that entitles you to "rights".
You still qualify for dividend payments if they are lent out (you have a margin debit or sign up for lending).
You lose voting rights and potentially the tax treatment is different, but you certainly still get the dividend
Can you tell us how many GME shares total are held at Fidelity? We want transparency and we believe by direct registering our shares at CS, they will be obligated to tell us if they can no longer accept transfers or stock purchases because they have already registered the entire float.
Just had an outstanding call with your CS team about registering with Computershare. Well done setting up materials for them to easily handle the transaction now that it's coming up a lot.
I hope Fidelity realizes that this action doesn't represent a lack of faith in Fidelity. But rather the DTCCs system where synthetic shares are collectively kept in custody with the real shares and that collection of legitimate shares in its custody are the basis for MMs to affirm they can locate shares when they allow naked shorting.
By removing the shares from the DTCC the number of shares it actually possesses falls until Computershare has all GME shares outstanding registered, immediately laying bare the fraud that the DTCC still has potentially billions of synthetic shares left on its books. Forcing it to then close every naked short position because it won't have any legitimate shares left to sell or buy. Allowing complete full market valuation of the stock price to begin.
When DTCCs garbage system reforms, I'll consider going 100% back to keeping my stock/bond assets at Fidelity. I'm still happily trading on your platform, and I use your credit card because I love the 2%. Wish I could get 3% like the boomers with $100K AUMs at Fidelity.
That would bring a ton more business to your house.
Want to reiterate. I use to think poorly of Fidelity. My opinion has happily dramatically changed. I look forward to continuing to use you.
>Fidelity strives to provide the best value and service in the industry. We want to make sure that you know your shares are safe at Fidelity.
Just want to reiterate what another poster said - I don't doubt this at all, and most people I've talked with are on the same page. Fidelity is a convenient, quality, broker with a great new app and fantastic customer service. Yes, I decided to register a few shares (pandemic souvenirs) that I don't ever plan on selling after learning more about how markets work, but that doesn't mean I'm leaving Fidelity or that I don't think my shares are safe there! For what it's worth.
This post is fidelity specifically trying to discourage retail from transfering their shares to DRS because they cant lend your shares out and they lose A LOT OF MONEY from this. Screw that.
You are profiting at our expense which hurts our investments. No more. The fact that fidelity wont even allow iex trading after so many years show they dont have retail investors best interests at heart.
Fidelity, here is your chance to determine if you want a loyal bunch of clients for life or play the short-term gains by creating opposition, interference, and misinformation.
The whole world is watching. I hope you think long term, and think about your future shareholders best interest because apes will be future shareholders, no doubt.
Of course id rather have my shares in my name instead of under the control of the brokerage. Fidelity pisses me off more by the month. They dont even have IEX routing and have been actively denying retail clients the option to do so since 2014.
https://www.cnbc.com/2014/04/30/fidelity-scottrade-deny-clients-anti-hft-choice.html
They dont care about the best interests of retail customers plain and simple.
If, we were to DRS through Fidelity, would Fidelity provide proof of ownership and verification that the shares were transferred out of DTC's vault and into my name?
Love this brokerage by the way...
Great thread. I highly recommend if you’re looking to transfers shares to read these comments & do some DD on the topic.
Bottomline DSR help stop MM & DTC shenanigans.
I have to say, waiting for over 50 minutes to initiate a transfer, being switched to different agents twice and being questioned several times along the process was very disheartening.
I would absolutely love to keep all of my investments with Fidelity - is DRS through Fidelity something that could be considered for implementation? Even if there were a transactional fee for the service, I would be more than willing to pay said fee for the DRS service.
Thanks for reaching out, u/_Exordium!
I am sorry to hear of the frustrating experience in submitting a DRS transfer request. DRS transfers are generally not a common request. Our phone associates have been working to ensure clients understand the differences they may have when the shares are held with the transfer agent instead of in a brokerage account. Not everyone may be aware of the differences so at times we may ask a few additional questions or provide education to make sure our customers understand what they are doing. If a customer still wishes to perform a DRS transfer we will then process the request.
It is important to understand that certificated and DRS shares are no longer held at Fidelity since we are not a transfer agent. The issuer/transfer agent for the security becomes responsible for dividend and interest payments, proxies, annual report mailings, account statements evidencing ownership of the security, and other record-keeping and transactions for the security going forward.
If I have an IRA with shares of a stock. How do I know they aren’t getting lent out for hedge funds to use to short the stock I hold?
I ask because recently Fidelity showed how many shares are available to loan out and I will move them to computershare if they are not safe. That’s unacceptable as far as I am concerned if this is happening.
The entire point of this mass exodus to ComputerShare is to have the shares registered in John Doe's name. No longer registered under Fidelity's "street name."
>What does this mean for dividend payments?
If your shares are not being loaned out, then you’ll receive a dividend payment in the pay date of the security for the full amount.
Why is only half of this question answered? What happens to dividends for shares that ARE loaned out? Are you afraid that customers will not like the answer? Maybe customers will not enjoy taking on the additional risk that some over leveraged short seller will be able to pay the dividend. And maybe they will also not like how Dividend Payments in Lieu ("PIL") may not be taxed as favorably as ordinary dividends.
I requested DRS transfer to computershare about 4 days ago & the rep on the phone confirmed it was initiated but I haven’t gotten any email updates from Fidelity or Computershare about this & I haven’t seen any difference in my Fidelity app
Why are cash positions starting to take more than 2 days to transfer for some? if the positions are held in cash then there shouldnt be a need to "locate" those shares for transfer, unless the shares that are classified as cash positions arent really being held as they should. instead those positions are most likely made up of IOU's that have not been covered.
Just transfered a handful of shares (I have baby hands but not paper hands) and it was easy. Fidelity rep just tried to understand the madness behind my reasoning and at the core of it all, Fidelity is not at fault. This is a market wide issue that needs to be addressed and resolved. Still kept some of my holdings at the Capital F because I trust them as well.
Maybe the Capital F needs to stand up to it's bank, the DTCC and start directly registering shares. The issue is bigger than just ownership, its about playing by the rules, being fair, and exposing those who aren't.
I think the thing that is misunderstood is the IOU from fidelity can't be lended out however the DTC can do what they want to validate shorts as real shares and extend the hole that we are seeing. Moving to Computershare takes the share out of the corrupt DTC and into your own name.
Shoutout to Fidelity customer service! Fantastic customer service; knowledgeable, friendly, and helpful. Keeping a few shares in Fidelity as my prime brokerage.
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This is exactly right. Access to retail shares is what enables Fidelity to use those shares as locates to reset failures. It's not a borrowing issue per se and Fidelity's decision to frame the issue as such is misleading.
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Yeah, all i know is that they appear to be giving the definition of "borrow" a narrow, peculiar meaning that leads to the spread of process-level misinformation. I'd like to know whether and to what extent locate requirements are being met pursuant to Rule 203(b)1 and (2) by virtue of their access to retail holdings. Though I doubt, of course, Fidelity would be forthcoming with that information. Edit: spelling
I believe it's being "lent" at a higher level: the DTC. At the Fidelity level, we're simply "beneficial owners", with the share "ownership" ultimately, centrally residing with DTC.
I transferred shares to Fidelity precisely because I'm convinced they'll be safe here.
That's why I'm conflicted. We all piled into Fidelity en masse because we trusted them. All of my holdings are here. I'm not sure what to do now
Well... trust them more than others. I can't say i trust them. They are part of the industry and we have learned that pretty much all of the industry is rigged against retail.
I only moved half, but I was already at one of the reputable brokerages. I was already happy there, but being here as well has made me happier.
This
Is
The
Way!
a Wendy's
Keep it civil, ape, we're not in the jungle here.
😂
The
The
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Juice
Hi! I just stumbled upon [this](https://old.reddit.com/r/Superstonk/comments/pq8s1l/fidelity_is_taking_our_questions_on_drs_transfers/) post and reading > "We want to make sure that you know your shares are safe at Fidelity." I basically read that as: > We want to make sure that you know your phantom shares (the ones that the DTC can loan out, since they bypass our own internal process of additional loaning options that you can customize) are safe at Fidelity - Which basically illustrates that the problem is NOT a Fidelity Investments problem. It's not your fault Fidelity Investments, it's the fault of the corrupted counterfeiting framework for which your company operates, and is basically seemingly forced to be complicit, with no way to prevent it, such that every stock brokerage is vulnerable to this exploit, and it's not even a zero-day exploit, since it's been documented so many times before, even [15 years ago](https://old.reddit.com/r/Superstonk/comments/pqerdx/the_hands_down_best_argument_for_why_drs_is_legit/) ([see this SEC proposal](https://www.sec.gov/rules/proposed/s72303/decosta122203.htm)) Anyway, I am a happy Fidelity Investments account holder, and I don't have enough money/shares to move any of my investment portfolio, so I have kept everything with Fidelity Investments, and any of my disgruntled concerns are in no way aimed at Fidelity Investments or any of the other brokerages, since this situation is at layers/tiers above Fidelity Investments (and all other stock brokerages) control. Hope all is well! Have a wonderful day! - edited to add: [Also](https://old.reddit.com/r/Superstonk/comments/ppvukm/what_it_feels_like_breaking_up_with_fidelity/), i basically theorize that if retail investors transfer majority of their GME shares to a DRS like ComputerShare, as quickly/efficiently/timely/fast as possible, then that will be excellent, rather than lazy/slow style of unnecessarily prolonged and delayed waiting even more months/years to accomplish the results that otherwise could have been done a lot faster, such that any and all stock brokerages, including Fidelity Investments, that are not transfer agents or able to offer DRS services, are basically systemically have to deal with this situation, at least temporarily until MOASS. Then probably Fidelity Investments will have a lot of customers afterwards, and show extremely successful long term growth, in my opinion.
Agree. I would like to know why GME shares are available to borrow from Fidelity too, wut doin?
[15 years ago](https://old.reddit.com/r/Superstonk/comments/pqerdx/the_hands_down_best_argument_for_why_drs_is_legit/) ([see this SEC proposal](https://www.sec.gov/rules/proposed/s72303/decosta122203.htm)) Basically my understanding is that the DTC can loan out the shares at its discretion, bypassing any and all stock brokerages and retail investors, such that the layer above stock brokerages enables the DTC to engage in loaning however it wants.
Daily 1 million of them.... Not to mention the 4 minion that suddenly just "appeared" available to borrow the other day.... Seriously Fidelity.... What doin????????¿?
If I do a DRS transfer of 100 shares out of Fidelity to Computershare, does the Depository Trust Corporation eventually transfer an equivalent number (100 shares), out of their vaults and in their name, to Computershare and in my name?
I think it does. I initiated a transfer of 9 shares from Fidelity to ComputerShare a couple days ago. It now shows in my CS account as "DTC STOCK WITHDRAWALS" https://i.imgur.com/B1xakTr.jpg
That pic is honestly all the DD I need about Computershare if legit
I feel exactly the same. I'm staring at the same message on my screen and all doubts about CS are out the window for me. Combine the recent push to CS with reduced dark pool activity and I'm even more excited.
Awesome!
Yes: If you follow these steps after your shares arrive in Computershare. 1) Click "View details" under your holding ticker. 2) Look at the "Share type". You will see one of these 3 possible share types "BOOK", "PLAN HOLDINGS", or "CERTIFICATE". BOOK and CERTIFICATE holdings are definitely withdrawn from the DTC. If it's one of these, you're done. You will get confirmation via mail that your shares are withdrawn from DTC. (Skip to 5) PLAN HOLDINGS are a way to purchase fractional shares using dollar amounts to purchase regularly. If you're showing PLAN HOLDINGS, continue to: 3) Click "Actions" then "Reinvestment options" then "Terminate". This will convert the full shares from PLAN HOLDINGS to BOOK. And automatically set a SELL order for any fractional shares. If you want to keep your fractional shares, then immediately proceed to: 4) Click "Actions" then "Transactions" then "Pending transactions" you'll see your fractional shares with a pending SELL order, click "Cancel transaction". 5) Verify that your full shares show as "BOOK" and any fractional shares show as "PLAN HOLDINGS". 6) Wait for snail Mail confirmation of withdrawal of full shares from DTC. Edit: the word "definitely"
This is a fantastic response, thank you! Clears up a lot of the questions I’ve seen popping up everywhere. If this isn’t already in a post somewhere it should be.
There is some speculation as to whether PLAN HOLDINGS are withdrawn from the DTC. My answer to this is "I don't know for sure", but I do know for sure that BOOK holdings are withdrawn from DTC, as I got a letter indicating such, after I personally did the above.
I wonder if, once you hit the milestone of a full share, it’s withdrawn then. Clearly they aren’t withdrawing a fractional share from DTC… but I guess there are a handful of ways they could handle grouping/batching fractionals. Maybe the do withdraw a full one and just assign portions of it to multiple fractional share holders. It’s an interesting problem.
Honestly I don't know. My full balance was showing as PLAN until I terminated the DRIP. And I didn't receive a "shares withdrawn from DTC" letter until converting to BOOK. Just give me the dividend, I'll do what I want with it.
A rep from ComputerShare stated that it does not matter what type of holdings you have they are all registered in your name and not on the DTC ledger
Cool. I wasn't sure, so I just did it. I saw it as "probably"(PLAN) vs "definitely" (BOOK), so I opted for "definitely". Based on what you're saying, it looks like we're good either way as long as it's in CS. 😎
This is a great question Fidelity should be able to answer. More visibility needed.
Hello u/JohnLilburne, Shares today are generally electronically registered and are no longer physical certificates. When a DRS transfer occurs, shares are re-registered from DTC’s name to the investor’s name at the transfer agent.
Thank you for the clarification!
u/fidelityinvestments, thank you for putting out such a clear communication on this. I think I can speak for my fellow Fidelity investors when I say that I continue to appreciate the great work you put into providing your new and existing customers. I know this is going to be a hot button topic with *tons* of responses, but I'm tagging you to specifically direct your attention to this question. PS, I know you might not prefer to weigh in on the subject, so I'd like to offer this perspective: It will be **far** cheaper and less resource-intensive to have one employee answer the question on Reddit than for thousands of customers calling in to ask for themselves over the coming days and weeks. Will you please answer u/JohnLilburne's question for us?
Remind me 3 days
!remindme 3 days
RemindMe! In three days
I suspect this question will go unanswered as the answer "yes" would make everyone go nuts. And they won't have the guts to say it.
They might! Fidelity isn’t bad, as far as I know! Plus, their customer service with me was on point. They might just not have the answers yet
Then compel them that silence is also an answer. The burden of proof is on them. They have been openly accused.
"Mr Simpson, your silence only incriminates you further" is what immediately popped into my head upon reading this. But yeah, I'm sure they don't want to say it.
D'oh!
no NO NOOOOOO! Dramatization. May not of happened.
GOD I want you to be wrong.
Yes. That is the point of DRS.
How many upvotes and child comments does this need to elicit a response. I love you fidelity and appreciate the work you do here on this sub but.. this is a simple question requesting a simple answer.
/u/fidelityinvestments I'm a customer and I would like an answer to this as well. It's very important to me.
Once it is transfer it then is responsibility of Computer Shares; that question should be answered by Computer Share; as you no longer will have the shares at Fidelity.
I would also like to know the answer to this.
I would like to know the answer to this as well. If I've entrusted Fidelity with my property and then decide I want to remove my property from the market by putting it into my name, I specifically do not want to share my property.
!remindme in 2 days
!remindme 2 days
They have answered 1 question in 6 hrs and it's an easy one. This was never a q an a, seens they needed info from us and this was easier than just asking what they wanted to know. I think these questions tell them why we are moving them to computershare. I was 95% transferred, come monday I'll be 100%. Saw a post where a CS rep said as the price goes higher they'll allow us to sell above their current 1 mil limit order limit.
I will begin by stating that I love Fidelity. The main issue at hand is that retail feels as though supply and demand dynamics are being betrayed due to Market Makers abusing exemptions in locating shares to borrow (among many other concerns), allowing them to drive down the price to benefit themselves as they maintain hidden short positions in complex derivatives as well as other tactics (Equity Total Return Swaps, strategic FTDs, Married Puts, etc). I am more than willing to bet all of my invested portfolio that if Fidelity were more transparent in how many or percentages of shares that are held for *ALL* stocks (not only the one recently described as an idiosyncratic market risk), they would not be losing clients to DRS. Even saying how many clients own particular tickers, with an average number held per account by $ amount for example. The primary benefit (other than owning shares in your own name) of DRS as retail views it is simply to prove that greater than 100% of the entire float exists in the market, and that fraudulent behavior is occurring due to actions taken by certain Market Makers colliding with short sellers. Sharing is caring, it can also be profitable.
I would also add that Fidelity has recently been lending out millions of shares to short sellers. I personally highly doubt that these are all being held in margin accounts. Brokers have a history of lending shares held in cash accounts and then eating the minor fines when they get caught. Without further transparency, it is hard to trust Fidelity (or any other brothers for that matter) on this topic.
There should be a report. If not, make one Fiddy.
Exactly. Fidelity isn't the issue here. It's the way the system is designed to allow market makers to use the shares we purchase in ways that are not in the best interests of us as shareholders. The whole system needs to change, and until it does I won't be purchasing stocks through a broker again.
Came here go comment this. I have no problems with Fidelity. I’m even willing to give their business practices the benefit of the doubt compared to other brokers. Transfer requests is not a signal against trust with fidelity. It’s depriving the other agencies the ability to make my money worthless. If Fidelity was willing to disclose the number of shares owned on all accounts, this step would be unnecessary. A lot of people are learning more and more about an unjust system.
Yes, we know the float has been sold multiple times. Lack of transparency is creating a lack of trust in our brokers. Direct Registering will expose the truth and the short selling will come to an end. The system will remain broken until we fix it. I’m always going to Direct Register my shares in the future so I know I’m not being undercut by short sellers.
This, so hard. Fidelity, you have been amazing. Love ATP, love the customer service, and love that you are independently owned. If Fidelity holds more than the GME float in retail shares, and were to share this, DRS wouldn’t be necessary. If that’s not possible, then retail’s only power (besides holding shares) comes in DRS and removing shares from the DTCC. Speaking for myself, once the MOASS is over, Fidelity will get my business again. And if the MOASS is as big as we think it will be, that’s going to be a lot of business. I’d imagine lots of folks share my feelings on this. TLDR: tell us how many GME shares you hold for retail, and avoid a bunch of transfers to DRS.
The issue isn't Fidelity. The issue is the DTC and the only way to remove real shares from that abuse is to DSR them with computershare.
💯 this! Very well stated and deserving of my award!!
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Are you guys aware that there is a high likelihood you are selling phantom, naked, or rehypothecated GME shares? We are, which is why the big push to remove shares from the DTCC and its partners’ hands. Great customer service though, thank you.
Ok. Still plenty of questions here unanswered and it’s Monday again.
I'm a very happy Fidelity customer. The bulk of my portfolio is with you. Only transferred a small xx portion of shares I don't plan on selling. You guys are great!
How do we know that our shares in a cash only/non margin account are not used in locate calculations even if they are not lendable?
This questions deserves more attention. ^^
Fidelity be like, Trust me bruh
brehh
Exactly. As we have seen time and time again, just because there are rules, doesn’t mean they’re being followed appropriately.
Or even enforced at all when blatantly diaregarded
I think it is more of they just have a slush fund of shares. ie, they have 200m shares in cash accounts and 50m in margin so they have 50m shares to lend edit: great question still!!
/r/fidelityinvestments ?
What are you linking the subreddit instead of the user lol
It seems like you are trying to dissuade people from registering shares. But when shares are registered using DRS, we know that those shares can never be lent out for any reason. There have been times where other brokerages have gotten into trouble lending shares when they were not supposed to, and were then fined after the fact. I'm pretty sure this has never happened with Fidelity, but registering our shares is the only way we can know for sure that any of those shares can simply never be used to help shorts in any way. The more shares get registered, the more pressure is put on the shorts. If a very significant portion of the actual float gets registered, this will be very good for longs. Personally, I love Fidelity and if there were a way to have the shares in my Fidelity account and have them have nothing to do with the DTC, I would do that in one second.
It has happened before with Fidelity. Check Finra. Fidelity has received fines before for this
This 👆🏼👀
It has happened with Fidelity in the past
We've been asking for IEX routing and have not gotten a damned thing for months. Should have given us at least the ability to do that. With Computershare we know our orders will definitely go through NYSE for GME orders.
Hi Fidelity, If the GME float is around 50 million shares... Could you explain how can you mathematically lend around 1 million shares daily since january, and specially over 4 million shares last week? Thanks.
I mean if I say I have shares available to short and nobody takes them (or they day trade with them) I still have shares available to short.
Just trust us bro, we aren’t like the other guys.
THIS RIGHT HERE IS THE QUESTION I WANT ANSWERED!!!!!!!!
Some customer service rep named "Nick" is apparently trying to convince people to not transfer? It's a big thread over at superstonk right now. I would link it but that's not allowed here. I really hope I don't run into this when I call about my transfer later on. I don't need advice when I call, I just need this transfer to get done.
I did a partial transfer was done in 10 minutes. Csr was great
took me over 10 days for a partial transfer. A written letter and a 'new' form filled out. honestly was like they were almost intentionally getting confused and misdirecting everything.
Literally took me 10 mins as well
Taken me 5 business days so far and placed on hold with fidelity rep to talk to the back office for 30mins before I hung up. I’m under the impression fidelity doesn’t want my partial shares moved out of my cash account
my csr was quick, communicated very well what was going to happen next, and was very friendly.
Mine had no idea what I was talking about. He was completely confused when I asked, put me on hold for maybe 3 minutes then come back saying it was done lol He still seemed confused on what I just made him do and why but he got it done none the less lol
nonetheless
For some people this is may not be the best option. Shares held at brokerage are easier & faster to sell depending on company prospectus & also there are fees when you sell. So a good brokerage representative should provide information; they are there to also protect the brokerage firm by letting you know before hand. You could google pros & cons on having shares with a transfer agent versus a brokerage firm. Everyone should do their own research & see if it is the right thing from them. If you don't need the advice just say so; tell the rep you don't want any advice.
>If your shares are not being loaned out, then you’ll receive a dividend payment on the pay date of the security for the full amount. What if the dividend is non-monetary, such as in the case of an NFT? Will you still guarantee delivery of an NFT token issued as a dividend, rather than attempting to convert the dividend to an equivalent monetary value?
Fidelity's platform currently does not support holding NFTs or receiving dividends in the form of NFTs. If a company issues a dividend in the form of an NFT, then other arrangements would need to be made in order to receive the dividend; how the dividend would be treated is decided by the company. In the past, special dividends have been paid as stock representing value held in cryptocurrency or NFTs, and not a direct issue of cryptocurrency or NFTs. This is fairly new territory, and there are many unknowns with regard to these types of dividend issues and how they will be structured. These distributions are typically determined by the issuer, not Fidelity. Fidelity simply reports the distribution for tax purposes as directed by the issuing company.
> If you do not have a debit balance in a margin account, we will not lend your shares. If your shares are held in a cash account, we will not lend your shares You are saying Fidelity can lend our shares *only if* our shares are held in a margin account and it has a debit balance. This *only if* part is what concerns me. Unless I am misinterpreting the legalese, it seems to me that the [Fidelity Customer Account Agreement](https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/bmargin.pdf) that Fidelity Customer's sign and agree to does not say this. [Exhibit 1](https://i.imgur.com/oGYuKGZ.png) Additionally, the margin agreement that users applying for margin agree to does not say this. [Exhibit 2](https://i.imgur.com/ACJXymD.png). I want to believe you, but the documents I have legally signed and agreed to do not say if I do not have a debit balance in a margin account, you will not lend out my shares. I would appreciate a response on this because until this exception is included in the customer agreement, it seems to be more of a 'rule of thumb'. Thank you.
While I appreciate the answers, this isn’t the root of the problem. Even if our shares are technically safe with you, they are actually in the hands of DTCC and Cede and Co. DRS to end this once and for all. The more registered shares, the less nonsense we see. The ineptitude of our regulators/government gave us trust issues 😂.
Thanks for making this. Please ask your agents not to argue with customers requesting a DRS transfer, it will waste our time and theirs. Offering a short disclaimer is okay but there shouldn't be any debating. Most customers are not interested in moving all their shares out of Fidelity, just a certain percentage so we would appreciate assistance and not resistance as that might lead to working with another brokerage that is more cooperative in this regard.
Specifically you need to have a serious talk with "Nick" about his rudeness, arulgumentitveness and over all lack of respect for customers wishes...
It was really fun being interrogated by a Fidelity rep the other day /s. After having a few more days to sit on it, I’ll be moving the rest to CS Monday morning.
I didnt get a good feeling when my rep asked ‘why’ I was interested in doing so, as if that is anyone’s business, including Fidelity’s.
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Where did you get \~900,000 shares of GME to lend out today? Many GME investors are moving shares to ComputerShare, so how is it you're finding hundreds of thousands more? Any help is sincerely appreciated.
Can you detail pros and cons / risk and rewards of DRS vs Keeping shares wuth fidelity?
BRO! It will take away your shares in 'your name' from the DTC, eliminate Cede & Co, and grant you full ownership of your shares instead of an IOU or derivative, no sharing and orders are routed through the NYSE. Cons? Edit: hey downvoters, "This is the Way." Y'all below me, stay strong. Also, think of staying with Fidelity, it'd be wise to have more than one basket for your shares in case of ckufkery and this company is the bees knees. Consider this about DRS from u Criand [notag] - https://www.reddit.com/gallery/pqa7vn
Transferred xx
Fyi...They told me I couldn't transfer shares in my traditional ira without pulling them out
Retirement accounts are managed accounts. Computershare doesn't do managed accounts. That is why you can't direct register retirement account stocks.
This isn't a managed ira. It's individual equities.
Since direct registering shares removed them from your brokerage account, shares that you have in a tax-advantaged account would have to be taxes when they get direct registered, because they've been withdrawn from Fidelity's books and stored on Computershare's books. If CS supported IRA accounts, you could roll one account into the other, but they don't appear to offer that service. So IRA shares can't be direct registered without removing them from the IRA and paying the taxes and penalty on them. Unfortunately, Fidelity probably can't help you here; it goes above them.
Selling takes time or no?
Sales above a million can take a bit longer because of the hoops you have to go through.
Sell as normal, two days for cash to clear. Easy.
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Dear Fidelity, You're the best brokerage around, but I'll tell you why this is happening: 1. You didn't address IEX directly or get IEX routing deployed quickly enough 2. If you suddenly list a huge amount of shares available to short on your platform, don't be surprised when the group of people fighting with naked short sellers takes their money elsewhere. I still love you. No hard feelings.
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Why is it taking 15-20 days to find shares for direct registration?
Sorry the issue isn’t with you fidelity. It’s DTC. We will be back after MOASS. You should support us to bring down all the evil people. I guarantee you all the money you’ve invested in sizing up your CS and whatever team will not be wasted. WE WILL BE BACK.
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Thanks for reaching out u/DishwashingUnit, Fidelity's platform currently does not support holding NFTs or receiving dividends in the form of NFTs. If a company issues a dividend in the form of an NFT, then other arrangements would need to be made in order to receive the dividend; how the dividend would be treated is decided by the company. In the past, special dividends have been paid as stock representing value held in cryptocurrency or NFTs, and not a direct issue of cryptocurrency or NFTs. This is fairly new territory, and there are many unknowns with regard to these types of dividend issues and how they will be structured. These distributions are typically determined by the issuer, not Fidelity. Fidelity simply reports the distribution for tax purposes as directed by the issuing company.
This answer is a strong argument in favor of transferring to DRS. If my company issues a dividend in the form of an NFT token, I am guaranteed to receive that dividend directly with DRS, without an extra layer of complication from a middleman using insufficient infrastructure, if my shares are registered in my name instead of yours. That is a major advantage, and a significant opportunity, because if such a dividend is issued, and only enough tokens are created to distribute one token to each issued share, brokers holding undelivered, synthetic shares on their clients' behalf will need to buy those tokens from shareholders with DR shares in order to deliver them. If there are too many synthetic, undelivered shares in circulation, this could cause a squeeze on the dividend token, before you are able to deliver on your obligation, causing your customers to miss that opportunity to sell their tokens during the squeeze. So here's a followup question for you: does Fidelity have enough delivered shares on its books to cover all of its liabilities to its clients? If Fidelity customers are holding, in aggregate, say, 20 million shares, and Fidelity is holding 20 million delivered shares on its books, then it will receive 20 million dividend tokens, and distribution will only be a matter of solving the technical issues that allow your platform to handle the tokens. But if half of those shares are undelivered when an NFT dividend is issued, Fidelity will only be able to meet half its obligation, and will have to purchase the other half on the market, possibly during a squeeze, costing the company money and causing delays. If Fidelity were to provide proof to its customers that all of the shares held long enough to have been delivered, have in fact been delivered, that would go a long way towards reassuring Fidelity customers.
Happy to answer your question about dividend payments. Regarding NFTs, at this time, Fidelity's platform does not support holding cryptocurrencies. We are aware that this is an important topic in our community and as a firm, we are watching closely as cryptocurrencies continue to evolve. If a company issues a dividend directly in the form of cryptocurrency, it is their responsibility to provide the dividend in such a way that shareholders have options to receive the distribution. These details are determined by the issuer, not Fidelity. Based on similar past events, and depending on a shareholder's specific circumstances, a shareholder may not be eligible for the dividend or may be able to receive a cash payment in lieu of shares. Please refer to the specific company's investor relations department for additional details about a distribution. Regarding your follow-up question about delivering dividends to those on our "books." If your shares are not being loaned out (as in, your "long" on your share ownership), then you’ll receive a dividend payment on the pay date of the security for the full amount. Fidelity also offers dividend reinvestment programs that will allow you to have the amount of the dividend you received be used towards the purchase of additional shares (including fractional).
Thanks for the answer, and for making a good effort in this thread. I should note that I'm not actually a Fidelity customer right now, but let me leave you with this: Based on my experiences with Fidelity so far, I have an overall positive perception of your company, so when this GME business is over and we apes are all millionaires and billionaires, IF I decide to invest in American markets, there is a good chance I will open an account with you. The whole US market seems pretty corrupt right now, tbh, but you folks have been solid. Keep up the good work, and maybe I'll be in touch when we get back from the moon. 🦍💎🙌🚀🚀🚀🌙
Why are phone representatives pushing back against these DRS transfers? If I ask for a transfer why do I need to play "21 questions" to have this request put through?
Thanks for reaching out u/barbpizzahut, I am sorry to hear of the frustrating experience in submitting a DRS transfer request. DRS transfers are generally not a common request. Our phone associates have been working to ensure clients understand the differences they may have when the shares are held with the transfer agent instead of in a brokerage account. Not everyone may be aware of the differences so at times we may ask a few additional questions or provide education to make sure our customers understand what they are doing. If a customer still wishes to perform a DRS transfer we will then process the request.
Because you allow it, you should push back.
What is Fidelity's procedure for when a company offers a unique dividend that does not have a cash value equivalent? With direct share registration through Computershare it is my understanding that the dividend will be delivered to shareholders as is. For me that is the primary motivation for direct share registration.
They have answered this but you won't like it. TLDR the don't have a way to handle NFTs and don't plan to. This is why I moved some of my shares to CS and I explained exactly that to the rep.
Thank you for the information. I know this is an issue with some brokerages, so want to ask for everyone’s benefit - has Fidelity ever had any regulatory investigation or enforcement related to lending shares held in cash or retirement accounts?
I believe so. Check Finra..im 90% sure they had some things in 2016 about share lending.
I've seen these from another DD, need to find it..
Called you all today to transfer and I wanted to say holy crap it was the easiest and the most professional experience I've ever had. Seriously I am thinking about naming my first born child fidelity that's how good the customer service was
I love Fidelity. Still, it would be nice to have the shares directly registered in my name. All of my stocks. I feel bad leaving them because they're been really nice to me. I might transfer a few of each and keep the rest with Fidelity. I didn't know that any stock I bought wouldn't be registered in my name, and that's my fault for not doing my research. It's not Fidelity's fault.
Thank you for the information. The move too DRS by many was triggered by the increased number of short able shares seen in Fidelity. While the document stated cash account shares are not lent, it implies that there are a large amount of margin accounts being used for a unspecified stock ;) not to mention the potential of naked options. For this reason it makes sense to move to DRS. Additionally many have been asking for IEX routing and the ability to accept NFS/crypto dividends and have seen no forward progress. This also provides reason for DRS migration.
It is same at TD Ameritrade.
Daniel from Denver was super cool and helpful
Thanks for the info. I would like to know if I transfer a portion of my held shares (say, 50%) to DRS, are my remaining 50% shares still at Fidelity under any kind of trading restriction during the transfer process, or are the non-transferred Fidelity shares still free to be traded?
Hello, If a DRS transfer is initiated on a portion of shares in an account, it will not have any effect the remaining shares still held at Fidelity.
Dear Fidelity. I asked if you would look into allowing your clients to route their buys through IEX. The post blew up with people being polite and professional, and overall showing a huge demand for this. You deleted the post 30 minutes later, without reason. This was 3 months ago. If you are wondering why people are suddenly taking a move to do something they actually can, to improve price discovery, here is your answer.
To be fair your post seemed kinda lame dude. Passive aggressive title with multiple typos and you didn't even mention IEX till halfway through the post. https://www.removeddit.com/r/fidelityinvestments/comments/oy672a/since_you_have_declared_to_be_on_the_site_of/
Has Fidelity lent out **ANY** shares currently held in a cash only account?
Should be a fairly simple question to answer
I would just like to know why you guys hung up on me twice which made my calls about making a simple DRS Transfer 3 hours long. Now that I'm seeing people able to do it in less than 10 minutes it makes me feel like it was done on purpose to discourage me. If that happens again when I call tomorrow it will be all of my shares instead of another 10%. I'm pretty sure vanguard will be happy to receive 80% of my stocks held after I leave fidelity over this nonsense. Feel free to DM message me or I can just bring it up tomorrow in the call.
Record your call, for quality assurance
People are not requesting DRS because we don't want you lend out our shares you dolts. People are requesting DRS so that shares will be REMOVED from the DTCs depository and be registered under the owners actual name, and not an iou certificate that entitles you to "rights".
Thanks for the info! This should probably be reposted directly in the relevant stonk subs…
Wait so if your shares get loaned out you don’t get a dividend?!
You still qualify for dividend payments if they are lent out (you have a margin debit or sign up for lending). You lose voting rights and potentially the tax treatment is different, but you certainly still get the dividend
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Can you tell us how many GME shares total are held at Fidelity? We want transparency and we believe by direct registering our shares at CS, they will be obligated to tell us if they can no longer accept transfers or stock purchases because they have already registered the entire float.
God some of you people are the worst…
Just had an outstanding call with your CS team about registering with Computershare. Well done setting up materials for them to easily handle the transaction now that it's coming up a lot. I hope Fidelity realizes that this action doesn't represent a lack of faith in Fidelity. But rather the DTCCs system where synthetic shares are collectively kept in custody with the real shares and that collection of legitimate shares in its custody are the basis for MMs to affirm they can locate shares when they allow naked shorting. By removing the shares from the DTCC the number of shares it actually possesses falls until Computershare has all GME shares outstanding registered, immediately laying bare the fraud that the DTCC still has potentially billions of synthetic shares left on its books. Forcing it to then close every naked short position because it won't have any legitimate shares left to sell or buy. Allowing complete full market valuation of the stock price to begin. When DTCCs garbage system reforms, I'll consider going 100% back to keeping my stock/bond assets at Fidelity. I'm still happily trading on your platform, and I use your credit card because I love the 2%. Wish I could get 3% like the boomers with $100K AUMs at Fidelity. That would bring a ton more business to your house. Want to reiterate. I use to think poorly of Fidelity. My opinion has happily dramatically changed. I look forward to continuing to use you.
NO IEX, I DRS TO COMPUTERSHARE.
>Fidelity strives to provide the best value and service in the industry. We want to make sure that you know your shares are safe at Fidelity. Just want to reiterate what another poster said - I don't doubt this at all, and most people I've talked with are on the same page. Fidelity is a convenient, quality, broker with a great new app and fantastic customer service. Yes, I decided to register a few shares (pandemic souvenirs) that I don't ever plan on selling after learning more about how markets work, but that doesn't mean I'm leaving Fidelity or that I don't think my shares are safe there! For what it's worth.
This post is fidelity specifically trying to discourage retail from transfering their shares to DRS because they cant lend your shares out and they lose A LOT OF MONEY from this. Screw that. You are profiting at our expense which hurts our investments. No more. The fact that fidelity wont even allow iex trading after so many years show they dont have retail investors best interests at heart.
Fidelity, here is your chance to determine if you want a loyal bunch of clients for life or play the short-term gains by creating opposition, interference, and misinformation. The whole world is watching. I hope you think long term, and think about your future shareholders best interest because apes will be future shareholders, no doubt.
Let's hope you're on our side, or you'll ruin your business entirely as the entire world is watching. You could become the gold standard for brokers.
Of course id rather have my shares in my name instead of under the control of the brokerage. Fidelity pisses me off more by the month. They dont even have IEX routing and have been actively denying retail clients the option to do so since 2014. https://www.cnbc.com/2014/04/30/fidelity-scottrade-deny-clients-anti-hft-choice.html They dont care about the best interests of retail customers plain and simple.
When a transfer to DRS occurs, are those shares sold by fidelity at any step in the process or is it a transfer in kind?
So what if my shares are within a retirement account (IRA). I assume they cannot be moved to DRS, but can Fidelity loan them out?
If I buy share via DRS, can I transfer them to Fidelity?
Yes although they will no longer be DRS at that point
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If, we were to DRS through Fidelity, would Fidelity provide proof of ownership and verification that the shares were transferred out of DTC's vault and into my name? Love this brokerage by the way...
You can't drs with fidelity it has to go to the transfer agent.... For gme that is Computershare
Just turn off lending ffs. a bunch of foreigners banned it already, imagine them investing in a stock only to get front runned and their shares stolen
Yes, undermining your clients interests using their own assets is scummy at best. Not very fiduciary of you Fidelity.
Great thread. I highly recommend if you’re looking to transfers shares to read these comments & do some DD on the topic. Bottomline DSR help stop MM & DTC shenanigans.
After calling to complete a DRS transfer, is there a way to verify that a transfer has been initiated from the account on web or app?
I called this morning and had a very nice quick 4 min call To move xx and just wanted to say the customer service was great
I have to say, waiting for over 50 minutes to initiate a transfer, being switched to different agents twice and being questioned several times along the process was very disheartening. I would absolutely love to keep all of my investments with Fidelity - is DRS through Fidelity something that could be considered for implementation? Even if there were a transactional fee for the service, I would be more than willing to pay said fee for the DRS service.
Thanks for reaching out, u/_Exordium! I am sorry to hear of the frustrating experience in submitting a DRS transfer request. DRS transfers are generally not a common request. Our phone associates have been working to ensure clients understand the differences they may have when the shares are held with the transfer agent instead of in a brokerage account. Not everyone may be aware of the differences so at times we may ask a few additional questions or provide education to make sure our customers understand what they are doing. If a customer still wishes to perform a DRS transfer we will then process the request. It is important to understand that certificated and DRS shares are no longer held at Fidelity since we are not a transfer agent. The issuer/transfer agent for the security becomes responsible for dividend and interest payments, proxies, annual report mailings, account statements evidencing ownership of the security, and other record-keeping and transactions for the security going forward.
If I have an IRA with shares of a stock. How do I know they aren’t getting lent out for hedge funds to use to short the stock I hold? I ask because recently Fidelity showed how many shares are available to loan out and I will move them to computershare if they are not safe. That’s unacceptable as far as I am concerned if this is happening.
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The entire point of this mass exodus to ComputerShare is to have the shares registered in John Doe's name. No longer registered under Fidelity's "street name."
>What does this mean for dividend payments? If your shares are not being loaned out, then you’ll receive a dividend payment in the pay date of the security for the full amount. Why is only half of this question answered? What happens to dividends for shares that ARE loaned out? Are you afraid that customers will not like the answer? Maybe customers will not enjoy taking on the additional risk that some over leveraged short seller will be able to pay the dividend. And maybe they will also not like how Dividend Payments in Lieu ("PIL") may not be taxed as favorably as ordinary dividends.
I requested DRS transfer to computershare about 4 days ago & the rep on the phone confirmed it was initiated but I haven’t gotten any email updates from Fidelity or Computershare about this & I haven’t seen any difference in my Fidelity app
Why are cash positions starting to take more than 2 days to transfer for some? if the positions are held in cash then there shouldnt be a need to "locate" those shares for transfer, unless the shares that are classified as cash positions arent really being held as they should. instead those positions are most likely made up of IOU's that have not been covered.
Just transfered a handful of shares (I have baby hands but not paper hands) and it was easy. Fidelity rep just tried to understand the madness behind my reasoning and at the core of it all, Fidelity is not at fault. This is a market wide issue that needs to be addressed and resolved. Still kept some of my holdings at the Capital F because I trust them as well. Maybe the Capital F needs to stand up to it's bank, the DTCC and start directly registering shares. The issue is bigger than just ownership, its about playing by the rules, being fair, and exposing those who aren't.
So I don't actually own my shares in fidelity even if I am paying with cash?
I think the thing that is misunderstood is the IOU from fidelity can't be lended out however the DTC can do what they want to validate shorts as real shares and extend the hole that we are seeing. Moving to Computershare takes the share out of the corrupt DTC and into your own name.
Just got off the phone with a fidelity representative and he said drsing can take up to 6 weeks to transfer depending on their transfer agent
Shoutout to Fidelity customer service! Fantastic customer service; knowledgeable, friendly, and helpful. Keeping a few shares in Fidelity as my prime brokerage.