FYI Resources (ASX: FYI) secures DTC approval for Electronic Trading in the US

February 28, 2022 06:47 PM AEDT | By Team Kalkine Media

FYI Resources (ASX: FYI) secures DTC approval for Electronic Trading in the US — Image source: Kalkine Media

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Highlights

FYI Resources has secured an approval from the Depository Trust Company (DTC) to allow real-time electronic clearing and settlement of its shares in the US.

The Depository Trust Company manages electronic clearing and settlement of publicly traded companies.

The DTC approval for the OTCQX FYIRF traded stocks will bring ease of trading to US investors.

Australia-based High Purity Alumina (HPA) producer FYI Resources Limited (ASX:FYI; OTCQX:FYIRF; FSE:SDL) has achieved a significant milestone in streamlining its electronic trade functioning for its North American investors.

In an upbeat announcement, the HPA player revealed that it has secured approval from the United States-based Depository Trust Company (DTC) which manages electronic clearing and settlement of publicly traded companies.

As per the announcement, the significant DTC approval will allow North American investors to enjoy real-time electronic clearing and settlement in North America for FYI’s OTCQX-traded common shares in the US, through the Depository Trust & Clearing Corporation (DTCC), a subsidiary of DTC.

Management Commentary

Triggered by the announcement, shares of FYI jumped to AU$0.260 per share to trade nearly 4% up during an intraday trading session on Monday.

Also Read: FYI Resources (ASX:FYI) achieves ‘landmark’ results from Joint Extended HPA trial

Trading on OTCQB Venture Market

FYI commenced trading on the United States’ OTCQX market under ticker symbol FYIRF in 2021, with leading US investment bank, B.Riley Financial Inc as its OTC Sponsor. Subsequently, the Company had informed investors about its intention to seek electronic settlement services.

Good Read: FYI Resources (ASX:FYI) commences trading on US-based OTCQX market

As per FYI’s latest market update, its OTCQX FYRIF shares are the same class of ordinary shares as FYI’s ASX traded stock. The Company’s shares are fully fungible, and registered in two different countries. In addition to this, FYI also stated that the US’ compliance requirements to trade on the OTC are similar to the ASX requirements with the Company’s releases and disclosures being automatically uploaded onto the OTC news release platform.

Many online brokers including mega financial institutions like Charles Schwab, Fidelity, Ameritrade, and E-Trade offer OTCQX trading and settlement services.

Advantages of OTC QX trading

FYI’s move to list on the OTC came after the company saw a strong interest from the US investors. The OTC connects to a diverse network of broker-dealers that provide liquidity and execution services. The network also enables investors to easily trade through the broker of their choice and facilitates issuer companies to improve the quality of information available for investors.

Related Article: FYI Resources (ASX:FYI) gears up to get listed on US OTC market

Advantages of OTC QX trading

The DTC approval for the OTCQX FYIRF traded stocks will bring ease of trading to the US investors and the ability to trade in the North American time zone and allow settlements in US dollars.

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