Repeal of PDT Rule 4210 - Join Me (part 2)

Discussion in 'Trading' started by iceman1, Nov 21, 2011.

  1. What is equally troublesome is that even when a trader funds his or her account with >25,000 IF at anytime it falls below said amount ALL prior “day trades” FOR THE PAST 90 DAYS are considered in designating the account with the infamous mark of “pattern day trader”. Thereafter you are barred from opening ANY options or equity positions for over 90 days; subject only to one 'reset' every 6 months.

    Also interesting about this rule is that no broker/dealer was or is given any discretion to allow any customer(s) to trade without adherence to said Rule IF in their opinion such trader had the requisite experience and background to justify same! In other words you can be a market wizard, and yet you are not exempt.

    Of course SEC does not seem strongly adverse to HFT. At least I don't see them doing much about it. But maybe it's not cheating to SEC or FINRA. There are many other glaring examples of over-looking unfair or inequitable situations in the financial markets while sticking it to the little guy. Is that because in the USA markets it's OK to cheat so long as you're a big bank or financial firm with lots of money to flush down the toilet; quite often not even their own funds. But if one decides to open a smaller account, say deposit $24,999 hoping he or she may be the next Wizard they are not afforded an equal opportunity to compete in option and equity markets.

    In my view it's time this Rule be extinguished. It's a dinosaur. It's inequitable. One should have a right to participate in the financial markets subject to the restrictions of their broker so far as funding, and margin. The government should not single out a certain group of smaller traders to impose onerous restrictions while letting large financial firms ruin the economy by, among other things, showing little to no respect for risk and money management. This is hypocrisy. Plain and simply it is wrong!

    As an attorney I have an obligation to employ my skill, training and some of my time for the greater good. I take that professional obligation seriously. I also know that if we do not stand-up and oppose bad law in an effort to make a difference, nothing will change. Not to sound melodramatic but US and world history is replete with examples of evil triumphing over inequity until someone had the guts to make a difference. Too many people sit back and wait for others to do it for them. They complain about injustice, unfairness and inequity while taking no action. Of course I understand that so many feel powerless in the face of an overly-complex and convoluted system of justice, of business regulation and the like. Seeking redress for bad law and bad rules in the USA is far too often far too expensive and burdensome for the average citizen or business person

    This is a chance for all traders affected by the PDT Rule (past or present) as well as those not yet or ever affected but who live by a value system saying there should be a “fair and level playing field” in competition, to offer their support. I ask all interested to jump into the battle and lend your voices to revocation of the PDT Rule.

    The way to get the ball started is by the filing of a Petition with the SEC. I will do so ! Thereafter there will be opportunity for public comment. If at some point this administrative agency (SEC) denies the Petition I will file an Appeal in Federal Court, per the administrative review process. I respectfully ask any trader who is now affected by the PDT Rule or has at anytime, to:

    1. contact me via ET with your input on how the PDT has affected you and why you believe it should be repealed.

    2. provide your contact information for my files and list so I can send a copy of the Petition to you, and notify you when the SEC process commenced.

    I will message back my email and contact information.

    If you object to this Rule and believe in a fair and level playing field, I respectfully ask you to log into to follow the course of this Petition, after your are notified it has been filed. Thereafter I ask that you make comments to SEC via its' website, and in accordance with its' administrative rule-making procedures, in support of the Petition and repeal of the PDT Rule.

    I will post periodic updates on ET after filing said Petition, and post a copy.

    I ask any replies to this thread be made in good-faith and not in the spirit of conflict. However anyone with sincere or serious opposition to revocation is welcome to post opposing views.

  2. Lucrum


    The rule is not currently affecting me. But it is a ridiculous intrusion by an ever increasingly over reaching government. I can't imagine much progress on the matter with the current pro regulation administration. I will gladly sign any petition though.
  3. need a proof reader:

    should be:

    "evil triumphing over equity"
  4. lindq


    If I recall correctly, it was put in place during the go-go days of momentum trading, when many folks were losing their savings in trading chop shops. I believe the objective was to protect innocents from being prayed upon by sharks, of which there were many at that point in time.

    I'm curious as to what the SEC has put out officially to explain the rule.

    It has always struck me as being in the same ballpark as a motorcycle helmet law, in that the government should not be in the business of protecting individuals from themselves, no matter how stupid they may want to be, so long as they aren't harming others.
  5. The rule was put in place because the market always goes up.:D just give it some time. You know, re enforce the buy and hold model...

  6. Lucrum


    I wonder how many are losing their savings in Las Vegas?
    Why isn't there a government regulation limiting the number of bets a fool can make in a day?
  7. 2 threads on same subject? Long winded attny at work and making it more confusing then it needs to be.

    Sounds like PDT doing it's job.