Express ACATS via ECN?

shark,

I hope you're joking me. If you try to transfer a substantial amount of money with OTM options, and by some chance or mistake someone else jumps on your offer. You could lose a shitload trying to buy those options back, or you could lose a lot of sleep waiting for them to expire. Expensive way to save $50 wire fee ;)

alanm,

Maybe nobody would care if I did it at the closing price, especially at the small retail volume I'm doing. Still it seems a risk not worth the few dollars of margin interest that I was trying to save. I had the "bright" idea of trying to transfer profits into an IRA account this way. That might've been worth it if it's not so expressly illegal hehe.
 
Quote from kubilai:

shark,

I hope you're joking me. If you try to transfer a substantial amount of money with OTM options, and by some chance or mistake someone else jumps on your offer. You could lose a shitload trying to buy those options back, or you could lose a lot of sleep waiting for them to expire. Expensive way to save $50 wire fee ;)
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No I'm not joking, I was thinking of Bond Futures. The bond futures options have strikes from 80 to 135. I think you could find a strike that would represent no risk on expiration day.
 
Techincally, I don't believe it's illegal unless a fraudulent intent is the motive. This is all a very fine line. YOU WILL have regulators asking you questions about the self crossed trades, it's their job to see that the intent was not fraudulent, but accidental self crossing happens all day long.

IRS is already very wise to trying to move regular brokerage profits into an IRA via afterhours crosses and they apply criminal penalties after a certain dollar value ($10k I think) for trying to dodge these taxes (tax fraud).

Other requirements are needed on most ECNs for self cross. I've seen 30 seconds of limit exposure, to allow anyone else a have crack at you first....before you paint the tape. This enables a fairer pricing/avoids a fraudulent transfer of assets.

It all depends on the purpose for the cross, the ECN/exchange, your broker, and the regulators on duty that day.

As a good trader, you should be able to sell into the legit market during MARKET hours, and buy back lower the same way (or vice versa), in a different account to switch positions between brokerages.
 
dude...dont even waste your time...not good idea

not only are regulators breathing down your throat

compliance at your firm will also breath down ur throat

d
 
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