WORKAROUND:
Do the following steps:
1. Go to the Toad Command Window. IBM DB2 | <<DB2_CLIENT>>| Command Line Tools | Command Window.
2. cd ../bnd (go to the bnd directory).
3. DB2 CONNECT TO SSID USER username USING password.
4. DB2 BIND @DDCSMVS.LST BLOCKING ALL SQLERROR CONTINUE GRANT PUBLIC
There may be some warnings. You can ignore the warnings.
5. DB2 CONNECT RESET
6. exit the Toad Command Window.