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Gold/Mining/Energy : Blue Chip Gold Stocks HM, NEM, ASA, ABX, PDG

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From: pomegranate9/18/2011 3:16:06 PM
   of 48092
 
Margin increases set for at least one brokerage this week. I received the following blurb in an email from Interactive Brokers on Friday, September 16th.

I think IB is a fairly small brokerage, so this might not adversely affect the market unless other brokerages are implementing margin increases as well. Something to keep an eye on.


Margin Increases on Low Cap Securities
As a result of recent market volatility, please be advised that IB is increasing the margin rates on low capitalization stocks (currently defined as companies with less than $250 million in market capitalization). The margin increases will occur in three steps beginning on Wednesday, September 21, 2011 and ending on Friday, September 23, 2011. The margin rates will increase to 50%, 75% and 100% at the open of business on 9/21/2011, 9/22/2011 and 9/23/2011, respectively.

The current list of stocks which are subject to this margin increase is subject to change. The current list can be found on the following page:

ibkb.interactivebrokers.com

Upon implementation, any of the incremental margin increases may result in a margin deficit in the account. A margin deficit implies that an account becomes subject to automated liquidation. Please carefully review the current positions within your account and adjust the portfolio accordingly.

Interactive Brokers Risk Management
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