ATTENTION: Ever affected by PDT Rule please contact me to join lawsuit and petition FINRA

Discussion in 'Hook Up' started by iceman1, Apr 25, 2018.

  1. I am a semi-retired litigation and trial attorney in Chicago; and have also been involved at various times with the financial markets, since the very early 1980s. Also passed series 7 a few years ago.

    The PDT rule (promulgated in 2001) is unconscionable, unconstitutional, capricious, harmful and unfair in multiple ways. Moreover, it is the poster-child for the pervasive disparity and inequality in our society between the moneyed-gluttons who have more money than they should ever have or will ever need -and- all other world citizens who want to participate in the financial markets with a level playing field and less unconscionable and capricious regulation. Further there is no way this rule should ever have included options!

    The gluttons don't want Dodd-Frank or much of any regulation. However they stand by and allow this obscene regulatory rule with little to no purpose to persist and affect those who are not rich and/or who don't always have access to the arbitrary threshold required to be allowed to do more than a few "day" trades. Yet high frequency trading is AOK! Meaning it is allowed by FINRA and SEC and Congress.

    I have asked many over at TD Ameritrade to forward my objections to their decision-makers who might actually show integrity in asking the brain-dead at FINRA to lose this Rule once and for all. To no avail.

    Above $25,001 and you can trade unlimited. Devil may care. At $24,999 you can only make 3 weekly round trips before placing your account in jeopardy of being locked. Further if you carry a position overnight and then open the same underlying ETF or equity and/or option series/strike the next day and then close (what you think was the position held overnight) this absurd and intellectually weak PDT rule will designate that as a "day trade" which might result in your account being locked for an EM restriction. Then, IF your account is locked via EM it is not locked for 5 or ten days BUT FOR NINETY DAYS.

    Yep the corrupt member clown firms at NASD (now FINRA ) back in 2001 passed regulation whereby the less well-off have their accounts locked 90 days for making 4 days trades in a week; while Bear Sterns and Lehmann Bros. were allowed by NASD and SEC, during the same time period and decade, to have unlimited exposure to risk with little to no meaningful regulation. We all know how that ended.

    It is hard to write this without taking Dramamine since I find this and all similar regulation to be unconscionable in its unjust and unequal treatment of those without large financial reserves. Just like the rich gluttons don't like regulation for, inter alia, its chilling effect on job growth etc. Now, once again the bank and wall street firms are seeking less and less regulation. But do you see FINRA doing anything about an antiquated PDT rule? No of course not. What special interest is going to lobby or petition FINRA and the SEC to repeal. It takes guys like me who will devote significant time and resources for the public good. While wall street pays millions to high-priced lobbyists and contributes to Congress to water down Dodd-Frank and similar regulation!

    **I am looking for individuals to serve as plaintiffs in a lawsuit and other proceedings before FINRA, the SEC and in state or Federal court**.

    IF interested in standing up and being counted; in doing something meaningful to oppose this Rule, for yourself and all others who could or might (and have already) been impacted by same, please email me at and or text me me at 312.622.7733 with full name and all other pertinent contact information including brief history of if, how and when this PDT rule impacted you or someone you know.

    Think you can't make a difference? I know people can. This is your chance! It's about principle and keeping the playing field level for all.
    Last edited: Apr 25, 2018
  2. Maverick74


    This is a joke right? First of all, there is a very easy way to get around PDT. Open a cash account. No more PDT. Problem solved. No, you want you use leverage. You think you are entitled to borrow money and leverage that money with daytrading and think this is an entitlement? On what planet? Almost no country in Europe allows most of the leverage we allow for retail investors for securities. Even bitcoin is a 100% cash transaction. It's the main reason why regulators are not going after them. The second you bring leverage into bitcoin you will see mountains of new regulations. I'm sorry Murray, you are dead one wrong here.

    One reason brokers support the PDT rule even though on the surface one would think it costs them money (reducing trading), is that there is a huge cost for them to monitor these tiny gambling accounts. The amount of effort needed to babysit and hand hold these 5k accounts who are selling naked options and running their accounts into the ground is a major headache. It's why portfolio margin accounts have 100k minimums. You are not going to win this and you have no empirical evidence to back up your claims. Again, want to get around it? Easy, open a cash account. Done and done.
  3. Sig


    While you're tilting at windmills, why allow a portfolio margin account minimum as @maverick points out? The accredit investor concept is also unconscionable under your logic, so that also has to go. All hedge funds and private equity funds must accept any customer as an LP regardless of how much they wish to invest. Anyone should be able to open a brokerage account at Goldman, not fair that only the rich have access to that right.....And you could go on and on. Bottom line there's tons of precedence for setting limits on participation in the financial markets based on minimum amounts. And little if no precedence in the other direction. Add to that the massive influence that groups like AARP and consumer protection organizations have, and you've got neither a legal case nor a case in the court of public opinion. Just vent and let it go, this isn't going to be a money maker for you.
  4. vanzandt


    Do you have a Twitter account?
    Start the hashtag ... "#revokePDT". I'm not sure how that stuff works, but its available.
    Also open a petition on
    Create a huge stir on Reddit about it.

    Catch the eye of a few Millennials that are social media savvy that have been burned by it and it'll snowball.
    I think you'll get thousands of signatures in no time with a little bit of time and e-marketing.
    Its a BS rule and a noble/worthwhile cause on your part.
    Get it changed and you'll secure a small footnote in Wall Street history for yourself. For whatever thats worth. More than most people ever do with their lives.
  5. Good point: I forgot. Cryptocurrencies have had ZERO regulations; but if you want to "gamble" $25000 (which to rich guys like maverick74 ain't shit), you are heavily regulated. I guess that's reasonable to hypocrites.

    Hey, i recall you got a 90 (or 91) on Series 7; and i only got an 89. Also know you are highly skilled and teach options classes. But since then have you gone to law school? Didn't think so. So leave the issues having to do with law, justice, equity, principle, intergrity and honor to guys like me who spent 35 years protecting people from all backgronds and educations, including CEOs, from being ripped-off or cheated.

    James.DeGori likes this.
  6. Great ideas. Thanks!

    Only i am going to file a class action suit. Seeking damages and other remedies. Within 60 days.
  7. truetype


    Let us know when you start sending out checks!
    murray t turtle likes this.
  8. Maverick74


    While we are at it, we should get rid of that pesky accredited investor rule that prohibits joe lunch bucket from investing in hedge funds. Why should only the stuffy rich folks be allowed to invest with Bernie Madoff. It ain't fair I tell ya.
    rb7 likes this.
  9. vanzandt


    Thats a weak argument. Its all done with software Mav, this is not 1980. No human hand holding required. The restrictions are already in place for accounts less than 25K anyway. Just tweek the software a bit.
    There's no difference in cost giving a $2500 account $10K in margin buying power than a $30K account having $120K buying power from a systems point of view.
    Find me a link where the major brokerages are opposed to repeal of this rule.
  10. PLEASE: reply to this thread IF you have been impacted by the PDT Rule and/OR can serve as a plaintiff.

    All you other genius pundits and brilliant stock and options traders stick to other forums where you can continue to impress people with your market saavy and intellect.

    I will have Judges, ALJs and/or, if necessary, appeal(s) courst decide, not a bunch of market wizards guys on ET.


    best regards,
    #10     Apr 25, 2018