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Strategies & Market Trends : Galapagos Islands -- Ignore unavailable to you. Want to Upgrade?

To: gypsees who wrote (47834)	9/27/2003 2:49:06 PM
From: Challo Jeregy	Respond to of 57110

look at the link again - it's from a yhoo sch message board. I reread it and started wondering - I can't trade on margin in my IRA and can't short or trade options anyway. Of course, I'm with SCH so that might explain my situation - -ng- finance.messages.yahoo.com ======================================================= read some of the responses - evidently, others questioned the poster also. I would imagine rules depend on the kind of account one has . . . . maybe that poster has certain restrictions. I am assuming that the poster has a SCH account but that could be a wrong assumption. However, knowing SCH, I wouldn't be a bit surprised if that is something new for them. Re: NEW DAYTRADING RULES COMING SOON by: et_dre 09/26/03 03:15 pm Msg: 52557 of 52565 I'm pretty sure someone's mistaken. Either the rule has always been that way, or a broker is flirting with the law by allowing de facto margin in an IRA. We had Steve Sanders VP of IB and their head compliance guy on for a chat. We talked about IRAs and the daytrading rule in the chat. elitetrader.com >>> Currently, you can trade funds in an IRA over and over – 100 times a week if you want – as they are immediately available to trade after a sale. <<< As far as I know, IRAs are not allowed to margin. They're cash accounts. Which means you can trade as often as you like in them, with any cleared cash. But you do have to wait the 3 days for a previous transaction to clear. I'm not sure what eTrade has done in the past... (offer margin in an IRA?). I talked with Steve after our chat, and I'm pretty sure what I mentioned above is how IB has always interpreted the rule, and how it should be interpreted... you can trade as often as you like if you've got cleared cash. ----------------------------------------------------------- I can't get the FT -Financial Times - link anymore either. Looks like it rolls over everyday . . . but I did find this - interesting what Congress has been trying to do . . . . Rumsfeld blinked after 'Buy America' veto call By Peter Spiegel in London and Edward Alden in Washington Published: September 26 2003 21:55 \| Last Updated: September 26 2003 21:55 When Duncan Hunter, the new Republican chairman of the House armed services committee, inserted a provision into the annual Pentagon authorisation bill forcing the department to buy all essential weapons systems exclusively from US manufacturers - which would have to make all components with American machine tools - Donald Rumsfeld (pictured), defence secretary, struck back. "The provisions could produce a damaging reduction in the [Pentagon's] supplier base and cost the department and its US contractors billions of dollars to replace foreign-made machine tools," Mr Rumsfeld wrote to Mr Hunter in July. He warned that the provision could drive up costs on its biggest and most ambitious programme - the international Joint Strike Fighter, of which the UK is the leading partner nation - by at least $4.5bn. Indeed, Mr Rumsfeld's opposition to the provision was so great that he threatened to recommend that President George W. Bush veto the bill if it were included in the final version. But in compromise language dated September 10 and obtained by the Financial Times - which people close to the negotiations said was a product of talks between Mr Hunter and Pentagon officials - much of the provision's measures remain. The bill forces the Pentagon to create a "military system essential item breakout list" - a catalogue of any component needed to make a weapon "perform its intended function" - and ensure that all of the items on the list are bought exclusively from US manufacturers. It does give the Pentagon wide waiver authority - allowing the defence secretary to give written permission to buy foreign parts if they are not available in the US, or if it is "in the interest of the national defence". But such a waiver appears to be hugely complicated, forcing defence officials to give product-by-product approval to buy components from overseas manufacturers. The language also sets up a "defence industrial base capabilities fund", which the Pentagon is to use for "enhancing or reconstituting" industries and sectors where the US currently buys overseas parts. Although it does not appropriate any money to the fund, it forces the Pentagon to report annually on whether it has been used. The failure of the administration to remove the "Buy America" provisions in the bill has angered, among others, John Warner, the Republican chairman of the Senate armed services committee, who on Tuesday sent a tersely worded letter to cabinet officials, expressing shock that the Pentagon appeared to have backed off its promise to veto any bill containing the provision, and saying he was concerned about the message this would send to America's allies. news.ft.com