Illiquid fees are charges assessed by the National Securities Clearing Corporation (NSCC) for equities trading on the OTC Bulletin Board stocks (OTCBB) and Pink Sheet markets. All cash, margin, short trades on the OTCBB and Pink sheets markets at any price are eligible to be assessed illiquid fees. Eligibility criteria for these charges are:
Open net buy quantity represents the total unsettled share amount per stock at any given time during a 3-day settlement cycle.
Open net buy quantity must be less than 5,000,000 shares per stock for your entire firm.
Open net sell quantity represents the total unsettled share amount per stock at any given time during a 3-day settlement cycle.
Open net sell quantity must be less than 10% percent of the 20-day average volume.
Please note: The NSCC illiquid fee is based on the aggregate trading volume of all of Apex Clearing’s correspondent accounts, not just the individual client trade. In other words, your trade may not exceed 10% of the 20-day average volume, but you may still be charged the fee due to the trading activities of all Apex correspondent accounts in that security for a 3 day (T+3) settlement cycle.
Are there other charges I may be subject to?
Yes. Apex has implemented a fee of $250.00 for each trade that creates an illiquid charge as determined by NSCC. This fee is in addition to the interest charge that is applied to the customer account whose trade had created an illiquid charge.
When will my account be charged illiquid fees?
Your account will be charged these on the second day (T+2) following trade date.
How long will the trade be charged the illiquid fee?
If your trade is eligible for an illiquid charge your account can be charged every day until settlement date of the trade.
Will my account be charged interest in association with a trade that triggers an illiquid charge?
For trading activity that triggers an NSCC illiquidity charge, Apex Clearing will charge interest at a minimum overnight rate of 15% on the illiquid requirement generated by your OptionsHouse customer account.