Bye-bye reg T

lol, that's because none of them know. I have communicated with a couple of brokers that specialize in options and they can't tell me the details of the PM day-trading rule and what defines a hedge.

There is a PM seminar this week in NY for brokerages. Hopefully that will clear it up for them and they can relay the info back to retail traders.

 

So what brokers are offering PM from April 2nd? Fimat and thinkorswim are the only two I am aware of.

 

5 million minimum is not applicable to broker/dealers that are members of NYSE, CBOE, or now NASD.

 

I am more interested in this claim about margin on unhedge positions from one of the previous posts. Anyone can confirm this is true?

While portfolio-margining will greatly reduce the capital required for certain positions such as protective puts, it also repeals Reg T on owning straight equities. This was somewhat of an unexpected outcome. Regardless, rather than putting up 50% margin for buying shares, the requirement drops to 15% (because the position is stress tested for a 15% move higher or lower in the stock.) Consequently, an investor can control $10,000 of stock with only $1,500!

 

http://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/E5-7841.htm

this was too long to paste, tims margin is being replaced with stans margin


or maybe not


https://cpm.theocc.com/

 

IB wil be offering it for accounts over 100K, details to be released via communique shortly.

 

Mav Scores! I told you guys it would be accounts over 100k.

 

So here is what we have so far:

Fimat 150k
IB 100k+
TOS 100k

Any others to add?

Where are all those people that said there were no cap requirements for PM?

 

Here I am. TOS told me that there was no cap req!

 

I'm with Mav on this one. ToS states that they most will more likely than not require a minimum capital. Although unconfirmed, they states it would be approx. 100K. They also stated that there is a possibility that it will not be implemented on April 2, but soon afterwards.