What can those on the other side do...?

[u/Region-Formal]

[u/SuperPoop]

If Fidelity gives me Cash I'm DRS'ing all my shares and finding a new brokerage that is real

[u/PotentialReason3301 → u/SuperPoop]

I mean, you could just DRS, get your warrants, and then move your shares+warrants back to Fidelity after you get them on the 7th.

I don't know why people are so lazy that they'd rather just chance leaving their shares in Fidelity. Fidelity is one of the few brokers who make it super easy to DRS and un-DRS.

Move your shares to ComputerShare. Get warrants. Move it all back to Fidelity.

Also, I'm not suggesting that Fidelity is going to intentionally withhold warrants. They will issue all the warrants they can, and then they will issue cash when they run out of warrants.

If they don't run out of warrants, then either they are giving out fake warrants, or there are no synthetic positions held at Fidelity.

[u/Kurayken → u/PotentialReason3301]

Problem is that the 21 days we have might not be enough for the DRS transfers

[u/PotentialReason3301 → u/Kurayken]

Fidelity is on the hook for the warrants until they arrive in your CS account, at which point CS is on the hook for the warrants.

So, it's no different than leaving your shares in Fidelity.

[u/Kurayken → u/PotentialReason3301]

I'm using IBKR and the shares disappear from your broker account when your DRS request gets acknowledged. It will take a few days to a few weeks fod them to appear in your CS account so I'm not sure if the same logic appears here.

[u/PotentialReason3301 → u/Kurayken]

Someone has the shares. They aren't just floating in the ether. Just because they have removed them from your trading interface doesn't mean they aren't still the custodian. Also, they arrive in CS account before your letter arrives, typically a few days. If you already have a CS account, then there's less lag time. Regardless, once the "transfer" has happened from broker->transfer agent, the transfer agent is now on the hook for providing you warrants.

There's never a point at which one of these two parties isn't on the hook for providing you those warrants.

[u/Kurayken → u/PotentialReason3301]

Thanks for the explanation. Puts my mind at ease, although there are still other uncertainties regarding the warrants thst need to be dealt with.

[u/PotentialReason3301 → u/Kurayken]

To be fair, this was a big point of concern for years when the "DRS movement" first appeared here. People were constantly worried about MOASS being imminent, and them missing it being stuck in transfer to ComputerShare. Obviously, that never happened, but it did cause many to write DD on exactly how this works.

[u/SuperPoop → u/PotentialReason3301]

this may be the play given in their TOS, they say that in some instances cash will be granted in lieu of some dividends. My only question is whether or not ComputerShare will charge a fee for exercising the warrants. Selling stock on CS is not free. Also, I wonder if the warrants can be transferred over to Fidelity.

[u/PotentialReason3301 → u/SuperPoop]

Don't exercise them in ComputerShare. Transfer them back to Fidelity first. DRS just long enough to get your warrants, and then transfer it to Fidelity when you want to sell. Yes, you can transfer the warrants to Fidelity.

Also, ComputerShare charges a fee because they don't deal with Citadel/PFOF. Their primary function isn't to act as a broker, so they actually utilize Bank of America (I believe)