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Strategies & Market Trends : TATRADER GIZZARD STUDY--Stocks 12.00 or Less..... -- Ignore unavailable to you. Want to Upgrade?

To: steve goldman who wrote (7516)	3/7/1999 10:39:00 AM
From: majormember	Read Replies (1) \| Respond to of 59879

Steve, Thanks for responding. Regards, Skane

To: steve goldman who wrote (7516)	3/7/1999 12:06:00 PM
From: peter n matzke	Read Replies (1) \| Respond to of 59879

Hi Steve, I still box positions at two different brokerage firms, which have assured me that it is perfectly legal when done properly. I read the rule changes/clarifications which came out last June, Aug, and Oct. When i spoke to the compliance officer about the rule, he stated that the changes did not prohibit boxing a position. But rather tried to clarify that it is improper and illegal to try to subvent or subvert the uptick rule. And anyone engaging in devious actions such as multiple accounts to subvent or subvert the rules would be subject to penalties. I know that many firms do not allow boxing positions, but i believe that this is caused by limitations on their software which does not allow them to effectively track and monitor positions for the purpose of rule compliance. Two of the largest online brokerage firms currently allow boxed positions. regards peter

To: steve goldman who wrote (7516)	3/7/1999 2:13:00 PM
From: majormember	Read Replies (1) \| Respond to of 59879

Steve, Just curious about "Box" rule vs. hedging. I realize a box is if you are 1000 shares Short and 1000 shares Long the same stock (esp. at same brokerage). Not to split hairs, but what if you were 1000 shares Short, and 900 shares Long. Would that also be considered a "box"? To take it a step further, now at the same brokerage firm, you were Short 1000 shares, good news comes out about the co., so you go Long 700 shares as a "Hedge". Is it a legal hedge or an illegal box? Since there are many variations that can be played out, is the NASD rule only applicable to a true box... 1000 Short and 1000 Long? Regards, Steve