Dear Valued Client, In accordance with FINRA Conduct Rule 2520 which details certain margin requirements for equities accounts with respect to day trading (purchasing and selling the same security on the same day in a margin account), MB Trading's clearing firm, Penson Financial Services, Inc. (Penson) will be changing its policy regarding applying intraday credits of funds and securities to an account. Effective April 4, 2008, Penson will no longer permit incoming funds or securities to be calculated into the Day Trading Buying Power (Current Buying Power on Navigator Software) calculation on a same day basis. Clients will be unable to day trade on the funds or securities received until the day after the deposit of the assets is received and posted to the account as specified in the regulation. Therefore, no credits will be issued to equities and futures accounts for trading purposes when the funds arrive the same day to prevent improperly inflating the buying power for the subsequent trading day. We appreciate your business and support of our continuing commitment to ensuring that Penson and MB Trading are adhering to important regulatory rules and regulations. Regards, MB Trading
It sounds like you can't use the same funds repeatedly to daytrade any more. Is that right? I'd be surprised if that were the case, I haven't seen a similar announcement from my brokers.
The way I read it, all it says is that if you deposit new money into your account, you have to wait until the next day for it to settle. This is a one time event, and it's a very standard practice, so what's the big deal?
Effective April 4, 2008, Penson will no longer permit incoming funds or securities... So 'incoming funds or securities' just means from another account, such as a bank account, or a transfer from another broker? I initially took it to mean incoming funds from your trades.