After seeing the attack on day trading (both from the recently enacted PDT rules and the proposed option restrictions: http://www.elitetrader.com/vb/showthread.php?threadid=1136 ) a lot of people have floated the idea of creating a trading lobby to represent the traders and their interests. I don't think that we need to reinvent the wheel. The trading brokers such as IB, Schwab (Cyber), Ameritrade, Datek, etc. and our interests are aligned. Each of these organizations have many talented and experienced experts in the field of securities law. My idea is to ask them to form a joint organization funded by them that would present their clients interests before the SEC and other relevant regulatory bodies. In this way any costs associated with fighting this anti-trading campaign are shared equally by every trader. It is time that they recognized the extent of the danger they are facing as an industry and acted to protect themselves against the large behemoths such as Goldman Sachs, JPMorgan, MLynch, etc. What are your thoughts?
You are absolutely correct, you have my vote of confidence, what can we do now to speed the process or at least monitor it from our own standpoint. Even though the brokers you mention are aligned with the small trader, what do you think would be the best method to execute this scenario.
what's the difference ? IB's parent is a Market Maker. All retail brokers including Schwab have large institutions presence. It would be a wishful thinking to expect much more advocacy than you already getting. Kudos for IB they are doing what they can. To get more impact you need to align with a different group like Nader or his type. I am dead serious. Traders don't have a voice or a lobby. One should think of creating one or align with an existing consumer protection group. trading is not a right by itself but lending should not be discriminated and PDT is I think a discrimination based on asset level. How can you say to a trader - "no margin loan unless you have more money" ??? If you can discriminate based on current asset level - you still should not be allowed to give clearing 3 day versus instant buying power regrading asset level. that should be challenged in court/// you have 9k you should not have to wait any time to trade a 100 times a day if you pay your dues. This whole SEC maffia stinks and I wish someone stood up to them.
What ever happened to Harvey Houtkin? Didn't he demonstrate that it is possible to take on the Wall Street establishment and win?
Yes, there is a need for such an organization that would lobby for traders' interests. I'm not sure it should be a cooperation with brokers. But if such an organization existed the recent series of legislature hurting traders would have a much tougher time getting through.