No Margin for 3X ETFs at MB Trading:

F

flytiger

Wonder what's triggered that? Little blow up maybe?

Dear Valued Client:

Effective tomorrow February 25, 2009, our clearing firm will no longer allow Three Times (3x) Leveraged Exchange Traded Funds to be traded on margin. Additionally, options strategies traded on the underlying leveraged exchange traded funds will be limited to the following:

Long Call
Long Put
Covered Call
Debit Spreads

Below are the 16 Leveraged exchange traded funds that will be affected:
BGU Large Cap Bull 3x Shares
TNA Small Cap Bull 3x Shares
ERX Energy Bull 3x Shares
FAS Financial Bull 3x Shares
DZK Developed Markets Bull 3x Shares
EDC Emerging Markets Bull 3x Shares
TYH Technology Bull 3x Shares
MWJ Mid Cap Bull 3x Shares
BGZ Large Cap Bear 3x Shares
TZA Small Cap Bear 3x Shares
ERY Energy Bear 3x Shares
FAZ Financial Bear 3x Shares
DPK Developed Markets Bear 3x Shares
EDZ Emerging Markets Bear 3x Shares
TYP Technology Bear 3x Shares
MWN Mid Cap Bear 3x Shares

If you own these funds you will need to make certain that they are fully paid for and no longer on margin.

If you have any questions feel free to contact us at 866-628-3001.

Thank you,



MB Trading

MB Trading: FINRA/SIPC Member
 
I used to get reduced margin on those until recently.

They went from 30% to 50% last month with Questrade or Penson, whoever makes the decision.

Options are looking like the best way around this.....

Some fools must have held them long.
 
Penson posts Q4 net loss on write-off
Thu Feb 5, 2009 11:01pm

* Posts Q4 net loss of $0.43

* Q3 pro-forma EPS $0.26

* Net revenue down 9 pct from year earlier

Feb 5 (Reuters) - Penson Worldwide Inc (PNSN.O), a securities-clearing firm, swung to a fourth-quarter net loss, hurt primarily by a large write-off.

"On a sequential basis, the 13 percent decline in net revenue was largely driven by external market forces," Chief Executive Officer Philip Pendergraft said.

"In addition to the Canadian dollar, these factors included the significant reduction in the federal funds rate, weaker than usual year-end trading activity and continued slowness in securities lending."

Net loss was $10.8 million, or 43 cents a share, compared with a profit of $10.2 million, or 39 cents a share, a year earlier.

The company wrote off $25.3 million on unsecured receivables from Evergreen Capital Partners Inc, it said in a statement. Continued...
More...

This would be the blowup in question.

http://uk.reuters.com/article/governmentFilingsNews/idUKBNG31368320090205
 
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