Pattern Day Trade Rules

nusrat · Oct 19, 2002

Originally posted by Fohat
NASD has no jurisdiction over its competitors - the Option exchanges.

"Options are not technically subject to the SEC/NASD daytrading rules. However each house can apply the rules as they see fit." [TM Direct]

See this thread. I think that the email reply I received from O-X was saying that NASD has jurisdiction over the brokers, not the exchanges, so NASD claims that NASD rules apply, regardless of which exchange is involved.

TM_Direct · Oct 19, 2002

I don't know what half of these people are talking about or where they come up with this stuff, however, let's be realistic, S. Carolina State troopers have no jurisdiction in Florida, but I sure don't want to piss one of them off

As far as the Option exchanges, that is correct but if a NASD member firm is churning an account with options, they are under NASD rules and regs.

Gordon Gekko · Oct 19, 2002

Tell the SEC that the PDT rule sucks: chairmanoffice@sec.gov

while you're at it, tell the president, vice president, senators......
http://www.fltstd.org/content/congress/congress.htm

nusrat · Oct 19, 2002

Originally posted by def
Nice job promoting your firm. My guess is not for long.

MikeB,
Another interpretation of IB-Def's post just occured to me -- namely that, first thing Monday, IB is going to jump right on pressuring regulators to force O-X to apply PDT rules to options.

Well, if it happens, we'll know the source -- another example of "IB's leadership in promoting competitiveness and the best interests of traders".

loufah · Oct 19, 2002

I use my IB account only for options (and one nonmarginable stock). So I've never used margin. It seems unfair that I'm held to this rule (and I don't blame IB, mind you) when the stated rationale for the rule is to provide additional collateral to help the brokerage firms meet margin requirements.

One question: the Q&A page says the rule only applies if day trades are more than 6% of the total trading "activity". Is this measured in # of trades, # of shares/contracts, or dollar value?

TM_Direct · Oct 19, 2002

I'll let you tell them...no offense, but i'd rather piss off the State trooper then the SEC

.....While your at it, could you let them know we also don't appreciate decimalization, the up-tick rule or SuperMontage??? If you think this is bad, just think what;s going to happen when they eliminate all the rebates/credits that ecn's currently offer

chasinfla · Oct 19, 2002

decimalization is a drag.

metooxx · Oct 19, 2002

Originally posted by chasinfla
decimalization is a drag.

That is an understatement;

what we need is a liquid third world market with spreads large enough to drive a truck through ...

Gordon Gekko · Oct 20, 2002

Originally posted by TM_Direct
I'll let you tell them...no offense, but i'd rather piss off the State trooper then the SEC .....While your at it, could you let them know we also don't appreciate decimalization, the up-tick rule or SuperMontage??? If you think this is bad, just think what;s going to happen when they eliminate all the rebates/credits that ecn's currently offer

if you want to complain about something, go ahead and do it...whatever it is.

imo, the PDT rule is different from say, decimalization. decimalization applies if you have a $2,000 account or a $2,000,000 account. WHY ON EARTH, IN AMERICA, ARE THERE DIFFERENT RULES FOR PEOPLE ABOVE AND BELOW $25,000?!!?!? it's clearly a bad rule..and it should be repealed..period.

daniel_m · Oct 20, 2002

Originally posted by TM_Direct
If you think this is bad, just think what;s going to happen when they eliminate all the rebates/credits that ecn's currently offer

oh my god i think the world would end... :eek: