Is the SEC trying to eliminate day trading

Quote from etouch:

My brokerage firm has just informed me that under a new SEC ruling effective on 18 May, funds from the sale of securities considered as short sales, or held for a limited amount of time, cannot be used for another securities purchase until that sale has ‘cleared’ which takes three days.

What do you think about that?
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i would love for all daytrading to stop for a week. every firm just say fuck y.. sec, nyse. then i would love to see the faces when they see the volume declines. i guess when sec would realize how much fees they take out of daytraders and the specialists how much they can steal, the attitudes would change.
 
I asked a reporter who covers the SEC. That person says there have been no meetings of anykind, and no one is aware of such a thing. They will continue to dig, and I'll let you know.

Do you really think a regulatory body would hurt the firms? Come on. There is always another sucker.
 
Hey Guys... calm down.

This is just a new BrownCo regulation on cash accounts. It does not apply to margin accounts. It has nothing to do with the SEC. BrownCo lied, blaming the SEC for their own internal policy decision. When pressed they will own up to their "mistake."

Thank you for contacting BrownCo.

Our new cash account policy is that you cannot purchase using unsettled funds. You can only use settled cash to purchase securities. Although the SEC deems it unnecessary, BrownCo. has decided it is necessary to reduce and prevent free ride violations.

Should you need additional information, or would like to speak with a representative, please call us at 1-800-965-1190, Monday through Friday 7:30 AM - 8:00 PM ET.

Sincerely,
Michael Powrie
Senior Trader/Email
BrownCo
A brokerage service of J.P. Morgan Invest, LLC
Tampa, Florida
(800) 822-2021
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http://boards.fool.com/Message.asp?mid=22445413

Martin
 
Quote from Sparohok:

Hey Guys... calm down.

This is just a new BrownCo regulation on cash accounts. It does not apply to margin accounts. It has nothing to do with the SEC. BrownCo lied, blaming the SEC for their own internal policy decision. When pressed they will own up to their "mistake."



http://boards.fool.com/Message.asp?mid=22445413

Martin
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Not just browco, got same msg from MB Trading. But in general it means cash accounts and this rule was always there. Perhaps most brokers were letting this slide, I know Ameritrade used to when I was with that pos broker. Let me know if I am wrong.
 
That's right, I knew I had seen something similar recently:


From: MB Trading Email
Sent: Friday, May 20, 2005 6:26 PM
Subject: MB Trading - Cash Settlement

To comply with federal securities laws and NASD rules, including Regulation T, Penson Financial Services has changed their policy on the settlement of trades placed in all cash accounts, including IRAs.

Regulation T requires full cash payment for the purchase of any security in a cash account without relying upon the anticipated proceeds of any unsettled trade in the account.

Effective immediately, cash transactions have a settlement period of three business days. For example, if you buy a position on Monday and sell it later that day the proceeds from the transaction will be available on Thursday. In other words settlement for cash transactions is the trade date plus three business days.
 
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