PDT Rule & Prop Firms

Quote from Joab:

EXACTLY

This makes absolutely no sense at all.

What's next ?

Sorry your not allowed in a Casino unless we do a credit check on you and you get a licence :eek:

It's for your own protection :confused:

What the fuck is happening to America ?

I would expect this shit from Canada, Germany or England but the land of democracy ?
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come on.. the SEC is protecting $500 on avg per trader's deposit. never you mind they have cost them 6 trading days and counting.

back in the US... back in the US... back in the USSRRRRRRRRRRRRRRRRRRRRR.


edit: and this is according to the summary in the complaint. they claim the books are off 10%... this is "alleged" not proven.. worst case scenario.


meanwhile Bear Stearns is going to rape the taxpayers and i haven't heard of one indictment.
 
Quote from Joab:

I don't know that this would help.

The SEC has authority over everyone trades on it's exchanges, no matter were you reside.

It's there house and they set the rules.

Can anyone confirm my assumptions or could traders in another country get away with 20:1 margin ???
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That may be true, but what is "enforceable" overseas is very different from what the SEC can enforce here. wink - wink :D

- plus, I like the 0% tax rate if the trading entity is set up right.
 
Quote from ratboy88:

come on.. the SEC is protecting $500 on avg per trader's deposit. never you mind they have cost them 6 trading days and counting.

back in the US... back in the US... back in the USSRRRRRRRRRRRRRRRRRRRRR.


edit: and this is according to the summary in the complaint. they claim the books are off 10%... this is "alleged" not proven.. worst case scenario.


meanwhile Bear Stearns is going to rape the taxpayers and i haven't heard of one indictment.
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And let's not forget that this is the same government that allows Bob (the $25,000 per year janitor) buy a $600,000 home with zero down.

What a fucking sham !!!
 
i'm at assent and this is the deal

1-don't take series 7 but put up 30k and have to maintain 25k balance-i will get regular 2-1 leverage overnight and 4-1 pattern day trade BP- this is same as an e-trade for example

2- take and pass series 7 and its business as usual with the nice leverage

everything else is speculation at this point-you don't hear Don Bright sweating do you? Just take the damm test and stop freaking. Get with a licensed firm and your ok. Wishing this to go your way is fruitless. It is now just the way it's going to be
 
Quote from jd1028:

i'm at assent and this is the deal

1-don't take series 7 but put up 30k and have to maintain 25k balance-i will get regular 2-1 leverage overnight and 4-1 pattern day trade BP- this is same as an e-trade for example

2- take and pass series 7 and its business as usual with the nice leverage

everything else is speculation at this point-you don't hear Don Bright sweating do you? Just take the damm test and stop freaking. Get with a licensed firm and your ok. Wishing this to go your way is fruitless. It is now just the way it's going to be
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That's the whole point of this thread ... IF the hammer comes down your series 7 isn't going to save your ass.

The PDT rule is what it is series 7 or not.
 
Quote from Joab:

That's the whole point of this thread ... IF the hammer comes down your series 7 isn't going to save your ass.

The PDT rule is what it is series 7 or not.
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What about a LLC is that is a sub of a futures firm, does the SEC have any justrisdiction over a LLC that only trades futures and no equties? Or is futures safe?
 
Quote from galvanicsniper:

anyone know how this is going to affect Canadian prop firms?
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From what i have heard (and im not the most knowledgeable person on this) is that the canadian prop firms that require no deposit, and pass through commission at cost are a different business model than the LLC leveraged deposit types. Because they do not extend leverage to people, and do not mark up commission, as long as they have the appropriate registrations and structure, they are not lumped in with potential actions against the other LLC firms.
 
Quote from jd1028:

i guess don bright is out of business then? no way-aint happenning
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LOL

Because Don Bright is above the law ?

If the SEC enforces the law to the letter (as it currently stands) then all will be forced out of business.

It's that simple and the LAW is very clear.
 
Quote from jd1028:

i'm at assent and this is the deal

1-don't take series 7 but put up 30k and have to maintain 25k balance-i will get regular 2-1 leverage overnight and 4-1 pattern day trade BP- this is same as an e-trade for example

2- take and pass series 7 and its business as usual with the nice leverage

everything else is speculation at this point-you don't hear Don Bright sweating do you? Just take the damm test and stop freaking. Get with a licensed firm and your ok. Wishing this to go your way is fruitless. It is now just the way it's going to be
More...

You aren't going to be able to get nice leverage even with a 7. The SEC explained that the PDT rule applies even if have a 7, so a BD cannot extend leverage to traders above and beyond the 4 to 1. Once a deposit is taken, it is looked at as a retail account. To be honest, I hope I am wrong as I don't want people to loss their income.
 
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