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Non-Tech : CyBerCorp.com
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To: CyBerCorp.com who wrote (253)2/11/2000 9:02:00 PM
From: RobbRacer  Read Replies (1) of 1001
 
Cyber,
I applaud the fact that you actually acknowledged that you as a BD have pulled shares in the name of risk management rather than just say shares were not available. I am sure this decision to be extremely conservative is the result of the merger and Berber and company will not do anything to jeopardize it. In fact, to be fair , if I was Berber I probably would also do the same to ensure my personal stake of 300+ million was safe until the transaction closed.

With that being said as a customer I am extremely disappointed. My company uses your BD as one of its sources and it is clearly evident from recent history that everything worth shorting you pulled in the interest of risk management. I understand that shorting done by an under capitalized novice is an extremely risky move with the only reward being a bunch of $20 commissions. My true disappointment is for the professional trader using your system who suffers as a result of the risk management policy.

My two constructive points of criticism are as follows. You have the technology to limit your losses anyway by closing out an account after their equity has been wiped out or additional equity to meet reg T requirements is not immediately wired in. By not giving the professional trader this option is in my opinion grossly unfair. It is obviously much easier to just not give those "risky" shares in the first place, but it is not the professional thing to do.

My second constructive criticism is relating to honesty. I suggest that when traders ask why shares are not available and the reason is due to risk management you instruct your operators to state so openly. I know for a fact that this policy has not been followed and your operators have either lied on their own or were told by management to do so.

Considering the power of the internet and the exchange of information with other traders at Penson and people who work in "the cage", it is easy to determine whether shares were truly available or not. Anything less than brutal honesty in my opinion is short sighted and unacceptable.

With that being said, I accept the new policy even though I do not agree with it. I would hope that a better form of risk management would be employed such as my previous suggestions but as a trader myself I shoot for what is realistic rather than what I would hope for.

Congrats on the merger and making Cyber mainstream,

Rob
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