I'm maybe being picky but I just wanted a clarification : What I was asking in my last post in reference to the nw daytrading rules from IB email: pattern day trader defined: make more than 3 trades (more than 3 ex :4,5,6...trades), BUT later in the it says: These customers will continue to be defined as "Pattern Day Traders" until "LESS" than 3 day trades are made within the last 5 business days. " (less than 3 ex : 1,2 trades) So what are you considered when you make 3 trades within 5 business days HEY! I just want to know LOL
I know this is small consolation to those that will be adversely affected by the new SEC rules but T+1 settlement is coming in 2004-5 appx. Maybe by then we'll have another bull market?
Babak - that is good news ! With IRA accounts, many folks have some significant $$$ at stake so T+1 at least provides much greater flexibility. I also believe there are more restrictions when trading through an IRA versus a regular cash account. My wife tried to buy a stock on the Toronto stock exchange (Wi-Lan) for her IRA http://finance.yahoo.com/q?s=WIN.TO&d=t a few weeks ago but was told she was limited to US stock exchanges. ----------------------------------------------------------------------------- Originally posted by Babak: I know this is small consolation to those that will be adversely affected by the new SEC rules but T+1 settlement is coming in 2004-5 appx. -----------------------------------------------------------------------------
Good article about T+1 from Securities Industries Association... ---------------------------------------------------------------------------- http://www.sia.com/press/html/pr-tplusone.html SECURITIES INDUSTRY'S SHIFT TO T+1 WILL BENEFIT INVESTORS, REDUCE RISK, AND SAVE MONEY New York, N.Y., Thursday, July 27 - Compressing the trade settlement cycle from the existing three days (T+3) to one (T+1) will enhance the efficiency and effectiveness of the U.S. markets, according to a study commissioned by the Securities Industry Association. The study, prepared by Accenture and The Capital Markets Company, estimates an annual savings opportunity for the industry of approximately $2.7 billion. These savings will be realized through resulting changes such as redeployment of resources, improvements in the matching and settlement process, reduction in the need for physical certificates, and improved methods for the delivery of prospectuses. "Investors will benefit from the industry's more efficient processing infrastructure, which will reduce their exposure to risk," said John Panchery, vice president of SIA and T+1 project manager. The entire industry will spend an estimated $8 billion to prepare for T+1, which includes testing and the necessary systems changes. Based on the projections of cost savings, this investment will be recouped in three years. "Currently, there is approximately $1 trillion worth of trades outstanding every business day," said Panchery. "Locking trades in earlier in the cycle will not only significantly reduce the risk involved, but free up industry resources for other uses. Streamlining this process is critical if the industry is to continue to deliver the high level of service investors demand." The business case also identifies ten "building blocks," changes in the existing processing environment that must be implemented to successfully move from T+3 to T+1. These include: modification of firms' internal trade processes to comply with compressed settlement deadlines; submission of near real-time trade information by the exchanges/institutions; and, the use of electronic means of payment by retail customers. The study estimates that the conversion will take 3.5 years from the time the industry begins the necessary changes to completion. Assuming a start in the fourth quarter 2000, the majority of the building blocks should be completed by the first quarter 2003, at which point the benefits of the conversion will have begun to be realized. The next 15 months would be devoted to full industry testing and stabilization, which would result in project completion in June 2004. "Based on the interviews we conducted, and the responses we received from the T+ 1 survey, we feel that this is a reasonable target date," said Diane Frimmel, executive vice president of PaineWebber Group, Inc. and chair of the SIA's T+1 Business Case Subcommittee; the subcommittee operates under the auspices of the SIA T+1 Steering Committee, which is co-chaired by Art Thomas and Diane Schueneman of Merrill Lynch. Accenture and The Capital Markets Company interviewed industry executives by means of a web-based T+1 survey. Fifty-six firms, representing both retail and institutional broker/dealers, custodians, and asset managers responded to the survey, which asked about the firms' readiness and systems changes necessary for the conversion. The respondents represent 75 percent of the equity capital of SIA member firms and 20 percent of assets under management industry-wide. Of the 20 firms whose input was deemed critical to the survey, the response rate was 100 percent. The major exchanges, key regulators, and the Depository Trust And Clearing Corporation provided input through interviews. Questions about SIA's T+1 efforts should be directed to John Panchery at (212) 618-0559 or jpanchery@sia.com. The Securities Industry Association brings together the shared interests of more than 740 securities firms to accomplish common goals. SIA member-firms (including investment banks, broker-dealers, and mutual fund companies) are active in all U.S. and foreign markets and in all phases of corporate and public finance. The U.S. securities industry manages the accounts of approximately 50 million investors directly and tens of millions of investors indirectly through corporate, thrift, and pension plans. The industry generates in excess of $300 billion of revenues yearly in the U.S. economy and employs approximately 700,000 individuals.
As I'm not in the states I'm not involved in the US business discussions. I got the memo and have interpretted the following lines to believe the 4:1 margin would be implemented after sept 28: Iâs implementation of the âDay Traderâ rules is as follows: · As of September 28th, 2001, âPattern Day Tradersâ with greater than $25,000 in equity will only be subject to a 25% margin requirement during normal market hours. On each day at 3:55 ET the extended markets margin requirement of 30% will go into effect until normal market hours resume the next business day, at which time it will again drop to 25%. These customers will continue to be defined as âPattern Day Tradersâ for a year after they are last put into this category. As for the pattern day trader, i read it as it is a 5 day rolling period where you can not have three day trades in that period.
I'm only a newbie, have'nt been trading margin till i got my feet more on the ground,The new ruling will mean i won't be. Now trading only long out of a cash account, learning in this market for 6-9 months i've been living with but t+3..... that totallly f@ks it. Likes been said already what happens when u get stopped out?? your swing- trading then becomes daytrading I only just found this site a few days ago and thru you guys found out about the t+3 part of it so thanks I'm with MyTrack/MyTrade asked for their policy today got this back, "As per your inquiry in Channel 9 concerning the NASD policy. We will be receiving the final policy at the end of the week and as soon as we receive it we will send it to you" Asked in their help room if they were going t+3 and the answer was yes so starting to look like its a well spread virus..... Unless something in the final policy sheds some light at the end of the tunnel.....of course I'm based Australia so any new news is much appreciated and thanks to the guys that have put stuff up its been helpful..
Surely this sec law has got to be breaching some dam constituional right... Way i read it is you got 25k... AND STAY OVER IT....,all's fine and dandy.You can short,daytrade your heart away and have your money available straight away.. On the other side of the coin and you don't for whatever reason happen to be able to meet the 25K figure its a whole differant ball game... One cannot even daytrade with his OWN money working only the LONG side...which is putting money IN the market AND then u gotta wait 3 F@king days for it to be able to use it again. Why don't you just paint me black and call me a nigger cos thats what is sounds like to me
everything's ok bubba - lust like everywhere in the world - there are good people - and there are better people
yeah Gerry an angry Bubba,I left fishing cos of rules and regulations that these wise guys dream up...looks like i just walked into some more of it...