On your web site, there is a new "Notice to Traders" dated May 1, 2000. Buried about 6 levels deep in one of the documents is a "proposed" rule change (see text below). There is nothing that clearly describes whether this has gone into affect and nothing that describes CyberCorp's position on this. What is the status of this rule? If the rule has been implemented, what is CyberCorp's position? How will CyberCorp implement this?
Regards,
Dan.
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The NASD, through its wholly owned subsidiary, NASD Regulation, Inc., is filing with the SEC a proposed rule change to amend NASD Rule 2520 to impose overall more stringent margin requirements for day-trading customers. The proposed rule change would:
(1) Revise the definition of "pattern day trader" to include any customer who (a) the firm knows or has a reasonable basis to believe will engage in pattern day trading, or (b) day trades four or more times in five business days, unless his or her day-trading activities do not exceed 6% of his or her total trading activity for that time period. A day trader would be able to shed the day trader classification if he or she did not day trade for a ninety (90) day period;
(2) Require minimum equity of $25,000 to be in an account on any day in which the customer day trades. Funds deposited into a day trader?s account to meet the minimum equity requirement would have to remain in the account for a minimum of two business days following the close of business on any day the deposit was required; |
