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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Mama Bear who wrote (12970)	5/14/2001 2:05:26 PM
From: WaveSeeker	Read Replies (1) \| Respond to of 18137

"Now go and get your f***ing shine box"

To: Mama Bear who wrote (12970)	5/14/2001 10:22:55 PM
From: LPS5	Respond to of 18137

Message 15771231 "...the apparent fact that all accounts* at certain brokerages are coded automatically by SEC fiat as pattern daytrading account has that effect."* Let's break it down. Error 1 “...the apparent fact that all accounts..." sec.gov 4. Accounts Used For Purposes Other Than Day-Trading Activities "...As an alternative to approving an account for a day-trading strategy, the proposal would permit a firm...to obtain from the customer a written agreement that the customer does not intend to use the account for the purposes of day trading ("other-use agreement")..." (Well, I guess it's not "all" accounts, after all, is it Barb.) Error 2 "...at certain* brokerages...” sec.gov As defined by the proposal, an account with as few as four round trip transactions in five days would be deemed a "day-trading" account. Upon discovery of such arbitrarily defined activity, the rulemakings would require securities firms of all types* to operate a special disclosure and margin maintenance regime for such day-trading accounts and to exact mandated firm capital charges equal to day-trading customers' margin calls. ("Securities firms of all types." Did you catch that, Barb? This learned online brokerage exec is obviously - according to you - as wrong as I am in believing that the daytrading account designation will be done, as are options accounts, certain penny stock transactions, etc...on an account-by-account basis, and not on the basis of your "certain" - and yet undefined - firms.) Error 3 “...are coded automatically...” secure.nasdr.com "2360. Approval Procedure for Day-Trading Accounts" (Well, Barb...why, if the SEC - as according to you - is the body that will be enforcing this on a firm-by-firm basis...is there an approval procedure for daytrading ACCOUNTS listed here - even more interestingly, in the NASD Rules and Procedures manual? Better asked...why - if the process is "automatic" as you put it...is there a procedure specified in the manual?) Error 4 “...by SEC...” cybersecuritieslaw.com NASD and NYSE Propose Rule Amendments To Increase Day-Trading Margins On December 10, the Board of Governors of the National Association of Securities Dealers, Inc. and the Board of Directors of the New York Stock Exchange approved amendments to NASD Rule 2520 and NYSE Rule 431, respectively. The amendments, which must be approved by the U.S. Securities and Exchange Commission before they can become effective, are intended to create special higher margin requirements for investors who engage in day-trading. The proposed changes to the rules also would impose a host of additional restrictions on pattern day traders including a requirement that day-traders' accounts maintain a minimum equity of at least US$25,000 at all times or no further day trades will be permitted. (It looks to me, Barb, that you've confused approval and enforcement. The rules, and their enforcement, are the responsibility of the SROs, who operate with the blessing of - in this case - the SEC. Note also the verbage: "...a requirement that day-traders' accounts..."; not a requirement of daytrading firms...) And, on top of that, note that on the SEC website, the PR announcing the initative falls under the “SRO rules” section... sec.gov and not the SEC section: sec.gov Error 5 “...fiat as pattern daytrading account [sic]...” sec.gov In addition to delivering the risk disclosure statement, the proposal would require a firm to either: (1) approve the customer's account for day trading; or (2) obtain a written agreement from the customer stating that the customer does not intend to use the account for day-trading activities. A firm would not be permitted to rely on the written agreement from the customer if the firm knows that the customer intends to use the account for day trading. In addition, if a firm knows that a customer who provided such an agreement is engaging in a day-trading strategy, the firm would be required to approve the account for day trading. (Well, I guess it's the firm that does the approval, isn't it; and it's not quite fiat, is it, Barb?) And, 6 “...has that effect.” LOL. Now: what exactly was that effect, again? :-) LPS5