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Old 21.03.2015, 00:23
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Stocks bought through Swiss Quote blocked

When you buy a stock do you expect to own the shares and all rights associated with owning that stock? I do but apparently that is not what Swiss Quote expects.

I own some shares in a major German corporation, purchased and held in a Swiss Quote account. The shareholders meeting is coming up so I decided I would like to attend the meeting as is my right as a shareholder. I requested tickets for the meeting through Swiss Quote but instead of tickets I received a letter by Einschrieben indicating that although I am the owner of the X shares in company Y, those shares have been blocked. On further query into the matter it appears Swiss Quote has used my shares, most likely for a short sale and the ownership of my shares actually reside with another custody bank. I am blocked of my rights and privileges as a shareholder until the day after the shareholders meeting is held so I will loose my rights to vote. Apparently I can go to the meeting as a guest if I still want to go.

I never realized that these discount brokers would be allowed to do such a thing here in Switzerland. Do all the brokers do this and is this legal?
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Old 21.03.2015, 12:22
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Re: Stocks bought through Swiss Quote blocked

Not familiar with the SwissQuote platform, but there is something similar with IB called Stock Yield Enhancement Program over which you have complete control.

By enabling this program, you accept to lend your long shares to IB and receive a percentage of the loan income they realize. During that time, you are still exposed to the market but you forfeit your shareholding voting rights (as they would probably be covering short positions).
https://www.interactivebrokers.com/e...s&p=stockyield

It seems that SwissQuote is doing the exact the same thing, yet without paying you for forfeiting your rights.
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Old 21.03.2015, 14:02
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Re: Stocks bought through Swiss Quote blocked

We just happened to stumble across this because we decided to attend the shareholders meeting. My husband will have to read the small print to to see if Swiss Quote has inserted a sneaky little clause allowing them to do this without our expressed consent.
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Old 23.03.2015, 11:51
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Re: Stocks bought through Swiss Quote blocked

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Not familiar with the SwissQuote platform, but there is something similar with IB called Stock Yield Enhancement Program over which you have complete control.

By enabling this program, you accept to lend your long shares to IB and receive a percentage of the loan income they realize. During that time, you are still exposed to the market but you forfeit your shareholding voting rights (as they would probably be covering short positions).
https://www.interactivebrokers.com/e...s&p=stockyield

It seems that SwissQuote is doing the exact the same thing, yet without paying you for forfeiting your rights.
Thanks for letting me know this was possible...Ive been with IB for about 18 months and had no idea they offered this.
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Old 09.04.2015, 23:38
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Re: Stocks bought through Swiss Quote blocked

Here is an update on this complaint.

We have not been able to get a proper answer from Swiss Quote. We wrote them a letter and they called us with some lame excuses and so far refused to put it in writing in response to our complaint. The shares were only blocked until the shareholders meeting was finished. My husband and I attended the AGM as guests unable to exercise our rights as shareholders. We'd like to know who took our rights to vote and why Swiss Quote hasn't compensated us for withdrawing those rights without our consent. We also sent a letter of complaint to FINMA and waiting to hear back from them.

We own shares in a couple of Swiss corporations through our regular bank here and didn't have any problems being registered as the rightful shareholders with voting rights.
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Old 09.04.2015, 23:57
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Re: Stocks bought through Swiss Quote blocked

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Here is an update on this complaint.

We have not been able to get a proper answer from Swiss Quote. We wrote them a letter and they called us with some lame excuses and so far refused to put it in writing in response to our complaint. The shares were only blocked until the shareholders meeting was finished. My husband and I attended the AGM as guests unable to exercise our rights as shareholders. We'd like to know who took our rights to vote and why Swiss Quote hasn't compensated us for withdrawing those rights without our consent. We also sent a letter of complaint to FINMA and waiting to hear back from them.

We own shares in a couple of Swiss corporations through our regular bank here and didn't have any problems being registered as the rightful shareholders with voting rights.
Is there any mention of it in the T&Cs? If not, I'm sure they will be updated soon!
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Old 10.04.2015, 00:31
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Re: Stocks bought through Swiss Quote blocked

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When you buy a stock do you expect to own the shares and all rights associated with owning that stock? I do but apparently that is not what Swiss Quote expects.

I own some shares in a major German corporation, purchased and held in a Swiss Quote account. The shareholders meeting is coming up so I decided I would like to attend the meeting as is my right as a shareholder. I requested tickets for the meeting through Swiss Quote but instead of tickets I received a letter by Einschrieben indicating that although I am the owner of the X shares in company Y, those shares have been blocked. On further query into the matter it appears Swiss Quote has used my shares, most likely for a short sale and the ownership of my shares actually reside with another custody bank. I am blocked of my rights and privileges as a shareholder until the day after the shareholders meeting is held so I will loose my rights to vote. Apparently I can go to the meeting as a guest if I still want to go.

I never realized that these discount brokers would be allowed to do such a thing here in Switzerland. Do all the brokers do this and is this legal?

Unless you actually get the stock certificates made out to your name, the shares are in fact owned by the broker. Somebody correct me if I am wrong but that is what I always believed is the case. The broker can sell your shares short of course but if you want to sell yours they would have to theorectically acquire them in the open market place or be a bit creative with financial accounting and just pay you out pretending you sold those shares.


You can always sell your shares forcing the broker to "buy" the amount of your shares in the open market place - or they would have to exercise the right forcing the short seller to cover.

We also had problems with SwissQuote but that was due to a lack of execution speed for some intraday trading. IB is much better for that.
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Old 10.04.2015, 00:57
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Re: Stocks bought through Swiss Quote blocked

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Unless you actually get the stock certificates made out to your name, the shares are in fact owned by the broker. Somebody correct me if I am wrong but that is what I always believed is the case. The broker can sell your shares short of course but if you want to sell yours they would have to theorectically acquire them in the open market place or be a bit creative with financial accounting and just pay you out pretending you sold those shares.


You can always sell your shares forcing the broker to "buy" the amount of your shares in the open market place - or they would have to exercise the right forcing the short seller to cover.

We also had problems with SwissQuote but that was due to a lack of execution speed for some intraday trading. IB is much better for that.
https://the-international-investor.c...account-safety
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Old 11.04.2015, 08:43
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Re: Stocks bought through Swiss Quote blocked

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Is there any mention of it in the T&Cs? If not, I'm sure they will be updated soon!
We are working on getting that, one reason why we asked Swiss quote to give us an answer in writing but so far they have failed to do so. It appears the procedure in the T & C's is to block the shares when one asks to attend a shareholders meeting but I should have also been registered as the shareholder and this wasn't done. The company couldn't issue the AGM shareholders admission pass for that reason and they even sent an email to Swiss Quote to try to help us get it done. In the end the company gave us quest passes.
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Old 11.04.2015, 09:10
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Re: Stocks bought through Swiss Quote blocked

I have searched for an honest ops I mean transparent broker I did extensive search read all their sec reports and concluded there is none. TD Ameritrade sell ur orders flow to citadel IB doesn't sell ur order flow but the trade against it. They got permission from sec

Now there is a broker from hftraders . retail traders are like gold fish in a shark thank like wall street.

So be careful most discount brokers for ex brokers go even further with their lack of transparency their manipulation of tick prices to cover fees etc..
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