I am sure this has been posted, but it's a good primer to keep handy: http://www.sec.gov/rules/sro/occ/34-53322.pdf
I am hearing 500k minimum. And retail firms will charge exorbitant finance charges for anyone that uses it. There will also be a very strict approval process as well similar to what they use to do in the old days when they had 3 levels of options trading access.
Thanks for that! It would seem to make sense that implementation of STANS (by end of year?) would be co-ordinated with this portfolio margin change but they appear to be separate initiatives. At least, the proposals and the Deloitte article discussed Portfolio margin only in the context of TIMS "STANS generates a distribution of 10,000 potential profit/loss outcomes for the entire portfolio rather than simply a range of potential price movements." Monte Carlo+
From what I've heard the onus is on protecting long stock positions by allowing investors to convert stock into syn calls (long stock/long puts). But keep in mind, this is not all going to happen at once. This will probably be the first stage. Then there will be modifications going forward. The retail brokers do not want to have be actively managing complex derivative positions. Right now, even TOS and Options Express has a hard time explaining how they margin iron condors. I swear these people are morons.
My source is an SEC middle-manager. I received a fwd of an email due to a connection with my in-laws. L3 was a joke. The SEC is concerned that a high water mark will be untenable for many reasons -- hence it's targeted at anyone staying within PDT. They LOVE PDT.
I have a question regarding TOS fill. I have an order opened for some time to buy Rut Jan 900 call @0.6. The system shows it is working and submitted to cboe, but I don't see my order reflected in the bid and ask (the bid/ask is 0.55/0.65). Is TOS holding my order or what?
Mav: When you get a chance look at the e-mail I sent you... (answer in private ) I now return you back to your regularly scheduled tangent..
Right, an offspring of riskmetrics VaR. Ib has been offering a portfolio-VaR for some time. Not w/o bugs, however.