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Strategies & Market Trends : New Margin requirements -- Ignore unavailable to you. Want to Upgrade?

To: H-Man who wrote (16)	3/19/2000 6:28:00 PM
From: Proton	Respond to of 20

Thanks, Harry, for both posts. I found the assertion by one broker that SWS was different a bit odd. I wonder how the 4X rule will be interpreted. How nice of the exchanges to propose rules that reduce liquidity. :-) P.

To: H-Man who wrote (16)	3/24/2000 12:05:00 PM
From: Proton	Read Replies (1) \| Respond to of 20

Re: Daytrading Margin Rule Implementation Here is an excerpt from the NASD's "Statement of Purpose" that accompanied the SEC filing of proposed changes to Rule 2520: ... the proposal would not permit day-trading buying power to exceed four times the day trader's maintenance margin excess. This calculation would be based on equity maintained in the account prior to each day's trading and, at the firm's option, could be based either on the largest open position at any time during the day or the customer's total trading commitment during the day. [emphasis added] It will be up to the broker or clearing firm to decide whether high-water mark or total trade volume is used for intraday calculations. My guess is that on-line brokers such as Waterhouse and E-trade will use the more restrictive calculation, while the direct-access brokers will allow largest open position method. BWDIK? P.