No Margin for 3X ETFs at MB Trading:

Discussion in 'Wall St. News' started by flytiger, Feb 24, 2009.

  1. Wonder what's triggered that? Little blow up maybe?

    Dear Valued Client:

    Effective tomorrow February 25, 2009, our clearing firm will no longer allow Three Times (3x) Leveraged Exchange Traded Funds to be traded on margin. Additionally, options strategies traded on the underlying leveraged exchange traded funds will be limited to the following:

    Long Call
    Long Put
    Covered Call
    Debit Spreads

    Below are the 16 Leveraged exchange traded funds that will be affected:
    BGU Large Cap Bull 3x Shares
    TNA Small Cap Bull 3x Shares
    ERX Energy Bull 3x Shares
    FAS Financial Bull 3x Shares
    DZK Developed Markets Bull 3x Shares
    EDC Emerging Markets Bull 3x Shares
    TYH Technology Bull 3x Shares
    MWJ Mid Cap Bull 3x Shares
    BGZ Large Cap Bear 3x Shares
    TZA Small Cap Bear 3x Shares
    ERY Energy Bear 3x Shares
    FAZ Financial Bear 3x Shares
    DPK Developed Markets Bear 3x Shares
    EDZ Emerging Markets Bear 3x Shares
    TYP Technology Bear 3x Shares
    MWN Mid Cap Bear 3x Shares

    If you own these funds you will need to make certain that they are fully paid for and no longer on margin.

    If you have any questions feel free to contact us at 866-628-3001.

    Thank you,

    MB Trading

    MB Trading: FINRA/SIPC Member
  2. I used to get reduced margin on those until recently.

    They went from 30% to 50% last month with Questrade or Penson, whoever makes the decision.

    Options are looking like the best way around this.....

    Some fools must have held them long.
  3. PNSN. Take a look. Yuk.
  4. This would be the blowup in question.