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Message: Ameritrade restricts EDIG trading for suspicious trading activity

Ameritrade restricts EDIG trading for suspicious trading activity

posted on Nov 28, 2007 05:10AM
Thank you for allowing me to assist you today.  TD AMERITRADE has restricted opening transactions in EDIG.  Only closing transactions will still be accepted online.  Opening transactions can be placed with a broker after further verification of your identity is performed.

When a stock has been reported to TD AMERITRADE by various third party sources as having suspicious trading activity associated with it, we may make the decision to add the symbol to the suspicious trading list.  Our internal sources may alert us to suspicious activity as well.  Once this happens, as you know, trades for these securities become restricted.  This is done for two reasons.

First, this allows us to monitor trades more closely.  We are obviously looking for suspicious trading activity.  This could include anything out of the ordinary.  This allows us to do our due diligence to make sure that we do not enable further manipulative trading on a security.

Secondly, this allows us to educate clients who are placing trades in these securities.  We want to do right by our clients, and to us, this includes informing clients when this kind of activity is reported.  We will still allow you to place closing transactions online, but we are in business for you, and we strive to protect you when we can.

Thanks,

Elizabeth B.
Client Services, TD AMERITRADE
Division of TD AMERITRADE, Inc.
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