I'll have to give steve the benefit of the doubt here. However, I'll reserve judgement till I get his explanations and computations on how SMA is calculated. I've been trading at another firm for more than five years and never has this sort of calculation been applied to my account. It was always maintenance excess times 4 for DTBP and times 2 for OBP. Not once did the lesser of SMA and maintenance excess figure in the calculations. It is mystifying to me when I can't get 2:1 buying power on my maintenance excess considering the fact that I don't have a margin loan with penson, I have excess cash in the account and I still end up not getting 2:1 overnight buying power.
What about it steve? I may have signed such an agreement on JUly 2, 2003 as you say. I don't recollect that far back but I must have done so when I initially opened my account with you.
Right. I was letting you know that is what you did becuase you mentioned you were mystified. I was clarifying for you.
Maybe I misunderstood but I thought you were saying that you were mystified how you could have any margin if you didn't sign an agreement. I pointed out that the agreement was signed. If it is regarding further clarification about SMA and Maint Excess then that you should have shortly from me. Regards, Steve
This is a first for me. But after looking into it in more detail , I'll lay it out as I think it is being calculated by your clearing house. If the S.M.A is lower than the Maintenance excess, then the figure that is calculated as the Reg-T buying power is used as the overnight buying power. If the S.M.A is higher than the Maintenance excess then the Maintenance excess is used to calculate overnight buying power- Maintenance excess multiplied by 2 equals overnight buying power. In this situation the Reg-T buying power figure would be more than the overnight buying power figure . I am mystified by the fact that my Special Memorandum Account is lower than my Maintenance excess when I don't have any margin loan. The fact that I signed a Margin agreement is besides the point. I haven't refused to abide by your Margin agreement have I? There are choices involved here and I'll leave it at that.
After going into more detail over the weekend I have the proof to render your statement wrong - Your statement: In addition, with issue about not having 2:1 overnight BP was because of SMA being less than Maint Excess. The rule is to use the lessor of the SMA or Maint Excess to determine the overnight BP. In this most current situation that was the case, SMA was less than Maint Excess I am emailing an attachment to you wherein the SMA is less than the Maintenance Excess, however the Maintenance excess was used to determine the overnight BP. I would have attached a copy of the document here but refrained from doing so to preserve privacy. Look forward to your input. The following is a PM I sent to Steve on friday December 7, 2007: Steve: I researched my account. All my positions have been purchased with my money and I have an extra $x in cash. I started trading at your firm on Tuesday December 4th. That makes it 4 trading days to date. On all 4 days my overnight buying power was not twice the maintenance excess. I don't care what the SMA calculations are. There is something wrong here. It takes plain common sense to see that there is no reason whatsoever for my overnight buying power to be less than twice the Maintenance excess on these 4 days. I just want an honest reply from you. If your clearing firm can't provide me the overnight BP that I should be getting in spite of a clean fully paid for account then let me know accordingly and I will make arrangements to find another brokerage. I Xd out the amount again to maintain privacy. I'd also like to point out here that on the first day when I traded at MB there would have been no unsettled trades and at the very least my overnight BP should have been twice the ME on that day December 4, 2007.