if the firm sells you a product it may be ok but it is you who can be held responsable for how you use that product.....i believe people will have serious problems in the near or long term who use these products :eek:
if the firm sells you a product it may be ok but it is you who can be held responsable for how you use that product.....i believe people will have serious problems in the near or long term who use these products :eek:
ASSENT has recently received approval for a product and will be rolling it out in the near future. Details to come. It is absurd to think a firm would put their traders in a legal problem. That is why the extensive legal clearance was done.
UNlikely that a series 7 would be held responsible if the sec did decide to do something, in this kind of case. If anything, the firm's management and maybe the 24's, but rare for the 7's.
The legality of the product is not the issue. Marrieds are still legal. It is the use of the product after the fact that creates a regulatory liability. The SEC looks for manipulation. Trying to get the best price for your sale not the worst to drive it down. Allowing a trader to put on a conversion is easy. Monitoring the use of that conversion to make sure it is not used to circumvent the short sale rule is another thing. When the SEC asks you what the economic justification is for putting on the conversion, what is the answer?
The real problem is the uptick rule itself! This is just small minded protectionism and contributes to the creation of valuation bubbles and excuciatingly slow corrections. It's easily defeated with simultaneous long (uptick) buy followed by the short. So it's a joke! It may have been meaningful with low volume issues at one time, but with the power of program trading, money is waiting to go to work at the right price. The SEC contintues to be politically influenced detrimentally to a free market! I think the message is to trade Single stock futures or other products like ETF's that don't have the uptick rule. (just shooting my mouth off )