def,
I followed your link and copied the following from IB website:
"IB Complies with SEC/NASD Day Trading Rules
Starting August 28th, the NYSE will impose a $25,000 minimum equity requirement for "pattern day traders." Effective September 28, the NASD will impose the same requirement.
The new rules define a pattern day trader as someone who has made four or more day trades within five business days in his or her account, provided that the number of day trades was more than 6% of the total trades in the account during the period.
Consistent with the new margin rules, as of August 28th, if an IB customer's margin account falls under $25,000 and the customer has opened and closed positions on the same day three times within five days, the customer will not be allowed to open new positions until the $25,000 requirement is restored, or the five days have elapsed.
Although the NYSE and NASD rules impose other "pattern day trader" account restrictions, our customers will not be affected by these restrictions because we believe our current margining system complies with these additional rules. "
After reading this, I would appreciate clarification on one point. It is stated that NASD imposes the new rule Sept 28.
But IB's statement seems to imply that the new rule will take effect at IB on August 28. Is this correct?
Or can we still trade NASD stocks without restriction until Sept 28 as that is when the SEC rule actually takes effect for NASD?
thanks...
I followed your link and copied the following from IB website:
"IB Complies with SEC/NASD Day Trading Rules
Starting August 28th, the NYSE will impose a $25,000 minimum equity requirement for "pattern day traders." Effective September 28, the NASD will impose the same requirement.
The new rules define a pattern day trader as someone who has made four or more day trades within five business days in his or her account, provided that the number of day trades was more than 6% of the total trades in the account during the period.
Consistent with the new margin rules, as of August 28th, if an IB customer's margin account falls under $25,000 and the customer has opened and closed positions on the same day three times within five days, the customer will not be allowed to open new positions until the $25,000 requirement is restored, or the five days have elapsed.
Although the NYSE and NASD rules impose other "pattern day trader" account restrictions, our customers will not be affected by these restrictions because we believe our current margining system complies with these additional rules. "
After reading this, I would appreciate clarification on one point. It is stated that NASD imposes the new rule Sept 28.
But IB's statement seems to imply that the new rule will take effect at IB on August 28. Is this correct?
Or can we still trade NASD stocks without restriction until Sept 28 as that is when the SEC rule actually takes effect for NASD?
thanks...
