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To: TFF who wrote (11262)	6/2/2004 6:11:15 PM
From: Dominick	Respond to of 12617

Then the same ruling must apply to margin accounts. If a margin account has $50K cash and buys $100k of stocks, then they should not be able to use that $50k until T+3 because..."Fed staff interpretation from January 2000 that states a customer who sells a security on trade date to pay for another security purchased on that day does not have what is considered to be sufficient funds in the account"... dom

To: TFF who wrote (11262)	6/4/2004 12:37:42 PM
From: Dan Duchardt	Read Replies (1) \| Respond to of 12617

The NASD interpretation relies on a Fed staff interpretation from January 2000 that states a customer who sells a security on trade date to pay for another security purchased on that day does not have what is considered to be sufficient funds in the account. If anyone can find a link to this Fed interpretation, please post it. I have not been able to find it. It sounds contradictory to earlier opinions that have been published by the Fed. I can't find those either at the moment, but I think I have the links on an old computer.