"CBOE's portfolio margining rules makes the U.S. equity markets much more competitive in a world where the lines continue to blur between product classes, where cross-border trading is common, and where capital moves quickly to the most efficient markets," said CBOE Chairman and Chief Executive Officer William J. Brodsky. "True risk-based margining frees up a tremendous amount of capital, allowing investors to more appropriately allocate assets in their accounts. The benefits to customers from these changes are profound and will revolutionize our market place." "Markets expand when new efficiencies are brought to bear, and today marks the beginning of a new era for the efficient use of capital and risk management for our markets," Brodsky added."CBOE has been a driving force behind moving this initiative through Congress, the CFTC and SEC, and it is extremely gratifying to see this finally approved."
market microstructure hasn't changed, what do u think we'll all go back to retail? HA! Try again. edit: yeah, you're right, I'm gonna take my money and open up a TDameritrade account, they give you free charts right?
Microstructure... right. Like those nickel markets you're hitting? Are you really that delusional to believe you can make markets profitably with these penny markets? There are guys inside your market by a penny... probably 5,000 of them at IB alone. You're babysitting your tickers and too obtuse to realize you're in denial. Here's an idea of the state of affairs: GS Jan/Feb 200 spread, 260x280. Filled on 200 at 2.70. A $.20-wide time spread on a $200 stock. Can you say FAIRVAL? I pennied some at $2.68, but only a few lots at that price. *Fact: Your competition just increased by an order of magnitude. Not that it matters as you're not profitable and sell-side is DEAD.
Wrong again champ. First, I am profitable. That is a fact. And this cboe circular doesn't exactly have me shaking in my boots. When did I ever say I could make markets in pennies? Try to read first, whos the delusional one, lol? Maybe you just wanted me to say that so much you thought I said it. I am fully aware of the penny market and making contingencies concurrently. congradufuckinlations on your GS trade, you're up fifty cents, great. That still doesn't change the fact that you're a douchesicle
I still don't see why any retail brokerage would want the majority of their customers to have portfolio margining. Even brokers that know how derivatives work will be in for some collosal headaches from all their 1 lot traders suddenly jacking up their size. ST