IB, Def, new SEC rulling

[Yoda]

This is just a note of appreciation to IB and their low commissions and to Def and all his putting up with us.

Def,

Please understand that were not really here to put down IB or shoot holes in anything you say. Just few starting out traders, including myself, found IB and its commissions a life saver and eventually execution speed got really addictive. And all this has to end now because of some new ruling that was meant to put us out of business or out of trying to get into the business. I think we’re all here in search for a solution, we’re not asking IB to overrule SEC, which is nonsense, not even to complain to higher authorities, I’m sure it already done more than enough. The only reasonable solution so far to allow live trading into cash accounts, and leave the praying of positive market up to us. This is not a rule breaker, since other firms are offering it, but it sure beats 3 round trips in 5 days, even conservative swing trader can highly unlikely live with.


Bob

 

[def]

My understanding is that real time updating of purchasing power is in essence margin financing and thus comes under the reg T requirement.

Assuming other firms are not being, for lack of a better word, "audited/prosecuted" for providing real time updating of purchasing power in cash accounts, then I assume IB will eventually follow suit.

 

[dozu888]

Just go trade eminis and options. Or get a real job and save up $25k.

 

[rfoulk]

def said:

> My understanding is that real time updating of purchasing power is in
> essence margin financing and thus comes under the reg T requirement.
>

Nope. The spin doctors at the SEC would like you to believe that, but it makes no sense. Trades can only be contested for something like a half hour or so after they're executed. All parties are required to guarantee them after that.


> Assuming other firms are not being, for lack of a better word,
> "audited/prosecuted" for providing real time updating of purchasing
> power in cash accounts, then I assume IB will eventually follow suit.

The new NASDAQ rules clearly leave settlement delay time up the the broker. If the NYSE rules are different, and IB has no way to opt for the NAS rules then they are in trouble.


Richard