Bye-bye reg T

Quote from Optionspoet:

I find it hard to believe that the larger brokers have not posted some sort of public discussion or Q&A on this. The closest I found was a comment in the OptionsExpress website stating that they will hold a webinar to discuss the topic.
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lol, that's because none of them know. I have communicated with a couple of brokers that specialize in options and they can't tell me the details of the PM day-trading rule and what defines a hedge.

There is a PM seminar this week in NY for brokerages. Hopefully that will clear it up for them and they can relay the info back to retail traders.
 
Quote from Maverick74:

A few points here. All portfolio margin accounts under 5 million will be PDT accounts. There is no way around this.
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5 million minimum is not applicable to broker/dealers that are members of NYSE, CBOE, or now NASD.
 
I am more interested in this claim about margin on unhedge positions from one of the previous posts. Anyone can confirm this is true?

While portfolio-margining will greatly reduce the capital required for certain positions such as protective puts, it also repeals Reg T on owning straight equities. This was somewhat of an unexpected outcome. Regardless, rather than putting up 50% margin for buying shares, the requirement drops to 15% (because the position is stress tested for a 15% move higher or lower in the stock.) Consequently, an investor can control $10,000 of stock with only $1,500!
 
Quote from just21:

So what brokers are offering PM from April 2nd? Fimat and thinkorswim are the only two I am aware of.
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IB wil be offering it for accounts over 100K, details to be released via communique shortly.
 
So here is what we have so far:

Fimat 150k
IB 100k+
TOS 100k

Any others to add?

Where are all those people that said there were no cap requirements for PM?
 
Quote from Maverick74:

So here is what we have so far:

Fimat 150k
IB 100k+
TOS 100k

Any others to add?

Where are all those people that said there were no cap requirements for PM?
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Here I am. TOS told me that there was no cap req!
 
I'm with Mav on this one. ToS states that they most will more likely than not require a minimum capital. Although unconfirmed, they states it would be approx. 100K. They also stated that there is a possibility that it will not be implemented on April 2, but soon afterwards.
 
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