"Options are not technically subject to the SEC/NASD daytrading rules. However each house can apply the rules as they see fit." [TM Direct] See this thread. I think that the email reply I received from O-X was saying that NASD has jurisdiction over the brokers, not the exchanges, so NASD claims that NASD rules apply, regardless of which exchange is involved.
I don't know what half of these people are talking about or where they come up with this stuff, however, let's be realistic, S. Carolina State troopers have no jurisdiction in Florida, but I sure don't want to piss one of them off As far as the Option exchanges, that is correct but if a NASD member firm is churning an account with options, they are under NASD rules and regs.
Tell the SEC that the PDT rule sucks: chairmanoffice@sec.gov while you're at it, tell the president, vice president, senators...... http://www.fltstd.org/content/congress/congress.htm
MikeB, Another interpretation of IB-Def's post just occured to me -- namely that, first thing Monday, IB is going to jump right on pressuring regulators to force O-X to apply PDT rules to options. Well, if it happens, we'll know the source -- another example of "IB's leadership in promoting competitiveness and the best interests of traders".
I use my IB account only for options (and one nonmarginable stock). So I've never used margin. It seems unfair that I'm held to this rule (and I don't blame IB, mind you) when the stated rationale for the rule is to provide additional collateral to help the brokerage firms meet margin requirements. One question: the Q&A page says the rule only applies if day trades are more than 6% of the total trading "activity". Is this measured in # of trades, # of shares/contracts, or dollar value?
I'll let you tell them...no offense, but i'd rather piss off the State trooper then the SEC .....While your at it, could you let them know we also don't appreciate decimalization, the up-tick rule or SuperMontage??? If you think this is bad, just think what;s going to happen when they eliminate all the rebates/credits that ecn's currently offer
That is an understatement; what we need is a liquid third world market with spreads large enough to drive a truck through ...
if you want to complain about something, go ahead and do it...whatever it is. imo, the PDT rule is different from say, decimalization. decimalization applies if you have a $2,000 account or a $2,000,000 account. WHY ON EARTH, IN AMERICA, ARE THERE DIFFERENT RULES FOR PEOPLE ABOVE AND BELOW $25,000?!!?!? it's clearly a bad rule..and it should be repealed..period.