Nasdaq Rule 2520

Discussion in 'Stocks' started by Toonces, Apr 2, 2008.

  1. Toonces


    Got an email from MBTrading today. I hope I misunderstand this, but it sounds like effective Friday, you can't daytrade the same funds over and over again. Is this correct? This is the first time I've heard of it.

    "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. "
  2. Toonces