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To: John Pitera who wrote (126201)	9/28/2001 2:22:13 PM
From: yard_man	Respond to of 436258

there's a PDF which I downloaded from my broker, but I don't have a link -- I'll see if I can find it. I figured all the brokers sent out a notice --

To: John Pitera who wrote (126201)	9/28/2001 2:37:17 PM
From: yard_man	Read Replies (2) \| Respond to of 436258

Here's a Q&A that Scottrade has -- still looking for the link >>Day Trading Q&A Q. What is the definition of a "Pattern Day Trader"? A. The NASD defines a Pattern Day Trader as "any customer who executes four or more day trades within five business days, provided the number of day trades is more than 6% of the total trades in the account during that period". Q. Will Pattern Day Traders be required to have a margin account? A. Yes, all Pattern Day Traders must have a margin account and will be required to maintain $25,000 equity. Q. If I have a margin account but I don't have $25,000 equity, what are the consequences if I day trade four times in a within five business days? A. Scottrade must issue a day trading equity call in the amount of the deficiency below $25,000 equity. Q. What will happen if I do not meet this day trading equity call? A. Scottrade may be forced to close your account, or revoke your margin privileges. Q. If funds are deposited to meet a day trading equity call, how soon can the funds be withdrawn? A. Wired funds must remain in the account for two business days. All check deposits will be held to current Scottrade policies. Q. Will day trading be allowed in cash accounts? A. Yes, day trading will be allowed in cash accounts on a settlement date basis only. For example: an account that starts with $10,000 may only buy up to $10,000 in equities one time that day. Q. Does the new day trading rule apply to options? A. Yes, it applies to all equities and options. Q. Will an account's status as a day trader be determined from September 28, 2001 forward, or will it be based on past activity? A. Accounts will be monitored from September 28, 2001 forward. Q. Once an account is coded as a "Pattern Day Trader", can the account be re-coded as a non day trading account? A. Once an account has been opened and has shown a history of day trading activity, it must remain a day trading account. <<

To: John Pitera who wrote (126201)	9/28/2001 2:39:20 PM
From: yard_man	Read Replies (2) \| Respond to of 436258

still looking -- here is a summary >>Requirements For Accounts That Actively Day Trade On Friday, September 28th, 2001, the National Association of Securities Dealers (NASD) will implement new account requirements that were approved earlier this year by the Securities and Exchange Commission (SEC). The amendment approved will update NASD Rule 2520. This rule will set the guidelines for investment accounts that use a trading strategy commonly known as Day Trading. The amendment establishes new requirements for customers who actively day trade (known as pattern day traders). The newly updated rules will only affect customers who are classified as pattern day traders. The NASD definition under rule 2520, defines a pattern day trader as "any customer who executes four or more day trades within five business days, provided the number of day trades is more than 6% of the total trades in the account during that period”. In addition to this new definition of a pattern day trader, the following amendments will be in effect on Friday September 28th, 2001: Higher equity requirement. The minimum equity requirement for pattern day traders will be $25,000. Clarification on the term day trade. Redefines the term "day trade" to treat the sale of an existing position held from the previous day as a liquidation, and the subsequent repurchase of that position as the establishment of a new position not subject to the day trading margin requirements. Day Trading Buying Power. Day trading buying power is calculated based on the customer's account position as of the close of business on the previous day. The amendments limit day trading buying power to four times the day trader's maintenance margin excess. Margin account requirement. All patterned day trades must be placed in a margin account. Trading in a cash account is limited to available settlement date balances in accordance with Regulation T and NASD Rule 2520. Scottrade is committed to assisting our customers who are affected by the new NASD rule, and ensuring that the transition is as smooth as possible. NASD Rule 2520 <<