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Strategies & Market Trends : LastShadow's Position Trading -- Ignore unavailable to you. Want to Upgrade?

To: AlienTech who wrote (8479)	2/12/1999 5:24:00 PM
From: Luce Wildebeest	Respond to of 43080

May have been posted already. Calvin Lawmakers seek probe of day trading WASHINGTON (Reuters) - Four key U.S. Democrats Friday called for a comprehensive investigation into the controversial and increasingly popular form of investing called day trading. The four lawmakers asked the General Accounting Office, the investigative arm of Congress, to conduct the probe, saying in a letter dated Feb. 11 that they were worried by the risks of day trading. Day trading is the process of quickly buying and selling stocks in hopes of cashing in on small price moves. The signatories were Rep. John Dingell of Michigan, the senior Democrat on the House Commerce Committee, along with Ron Klink of Pennsylvania, Edolphus Towns of New York, and Edward Markey of Massachusetts, the top Democrats on three House Commerce subcommittees. They said the Securities and Exchange Commission's current regulations and resources may be insufficient for policing day trading. ''We're not surprised that members of Congress would be interested in changes that affect the finances of millions of their constitutes,'' an official of the National American Securities Administrators said. NASAA, the umbrella group for state securities regulators, formed a task force in January as part of a crackdown on day trading transgressions, including unlicensed activity and deceptive advertising. Last week, the National Association of Securities Dealers cautioned members that investors must be properly warned about the risks amid unprecedented levels of day trading. In their letter to the GAO, the four lawmakers asked for a report on what efforts the SEC has taken to address day trading. They also asked about the size of the market, its rate of growth and to what extent day trading firms extend credit to traders or pool customer funds for additional trading. They also want the GAO to analyze how day trading is conducted, what is required to set up a day trading firm and what kind of investor protections currently exist.