SSF and IB

def · Oct 31, 2002

You probably already took a futures and equity exam so I guess that's it.

ditto for the risk disclosures.

Tech Analysis · Oct 31, 2002

I did a few weeks ago - thanks for the fast reply.

cocobop · Nov 3, 2002

Could anyone tell me what the equivalent number of shares equals one SSF contract?

TIA
Cocobop

Tech Analysis · Nov 3, 2002

nitro · Nov 3, 2002

Originally posted by def

It looks like we'll be putting the accounts into the commodity side to avoid PDT rules and provide the added leverage (you'll get 5:1). You'll might have to log onto the account page to request persmission to trade them. Info will be forthcomming

From our web site:
"Firms have a choice of carrying SSF positions in a securities or commodities account. At this time there is greater margin benefit to offering SSFs in a commodities account, and so IB will be offering SSFs in a commodities account. If and when final SSF rules are issued by the NYSE and NASDAQ providing margin benefits for stock, option, and SSF combinations, IB would offer SSF securities accounts. Click here for an explanation of SSF Margin rules. At launch IB will not allow delivery on SSF contracts but will instead will close out positions on expiration day."

def,

why would anyone want to put the SSF's into a securities account? Wouldn't that "override" the tax advantages? Or is this just an internal IB bookkeeping thing and not a way that would be looked at by the "outside world", e.g., the IRS?

nitro

u130747 · Nov 3, 2002

Originally posted by nitro

def,

why would anyone want to put the SSF's into a securities account? Wouldn't that "override" the tax advantages? Or is this just an internal IB bookkeeping thing and not a way that would be looked at by the "outside world", e.g., the IRS?

nitro

Nitro here is info from Liffe:

http://www.nqlx.com/nqlx/StreamingVideo/ssfvideo9.stm

Look at the transcript. SSF are going to be treated as stock transactions not futures. No tax advantage.

Bert

bungrider · Nov 3, 2002

Originally posted by u130747

Nitro here is info from Liffe:

http://www.nqlx.com/nqlx/StreamingVideo/ssfvideo9.stm

Look at the transcript. SSF are going to be treated as stock transactions not futures. No tax advantage.

Bert

i've said it before and i'll say again - despite that sh!tty uptick rule (which is pointless anyway) what is the point of SSF's?? They apparently aren't cheaper than stocks after all (IB $1/contract vs. $1 per 100sh) and receive no preferential tax treatment.

it seems the only purpose is to skirt the BS rules created by the SEC (PDT & Uptick rule)...

what a bunch of morons we have calling the shots...even if they wanted to revoke the PDT and Uptick rules, keeping harvey out of jail will probably keep them busy for a while..

Cdntrader · Nov 3, 2002

Originally posted by bungrider

i've said it before and i'll say again - despite that sh!tty uptick rule (which is pointless anyway) what is the point of SSF's?? They apparently aren't cheaper than stocks after all (IB $1/contract vs. $1 per 100sh) and receive no preferential tax treatment.

it seems the only purpose is to skirt the BS rules created by the SEC (PDT & Uptick rule)...

what a bunch of morons we have calling the shots...even if they wanted to revoke the PDT and Uptick rules, keeping harvey out of jail will probably keep them busy for a while..

"Certainly speculative capital is involved in single stock futures in the world ex-USA already. However, the flexibility for spreading (e.g. pairs trading of two similar stocks against each other) and the simple shorting process for futures means that individuals or institutions, large and small can utilize a vast diversity of strategies to hedge their existing portfolios or future cash flows. Single stock futures provide a whole new diversity and flexibility to the entire equity trading arena which will arguably be more advantageous to non speculators, even though they are very beneficial to speculators too. "

http://www.appliederivatives.com/co...7&IssueID=711149F8-5627-11D5-B9B300D0B73E4707

bungrider · Nov 3, 2002

Originally posted by Cdntrader

http://www.appliederivatives.com/co...7&IssueID=711149F8-5627-11D5-B9B300D0B73E4707

A truly moronic article. Clearly the author is not a trader.

Reading his article on pairs trading tells me he comes from a background as an analyst.

And I quote,

"Naturally, until they garner huge volumes nobody can be ultra confident that they will succeed, but given the popularity of options products and other types of equity hybrids such as exchange traded funds, the outlook for single stock futures appears bright."

...Ever try to trade a DIA?? Or an option?? I'd hardly call those products popular. Their illiquidity is derivative of the fact that they never caught on. LOL

Cdntrader · Nov 3, 2002

Originally posted by bungrider

A truly moronic article. Clearly the author is not a trader.

Reading his article on pairs trading tells me he comes from a background as an analyst.

And I quote,

"Naturally, until they garner huge volumes nobody can be ultra confident that they will succeed, but given the popularity of options products and other types of equity hybrids such as exchange traded funds, the outlook for single stock futures appears bright."

...Ever try to trade a DIA?? Or an option?? I'd hardly call those products popular. Their illiquidity is derivative of the fact that they never caught on. LOL

the DIA trades millions a day. Are you saying that ETF's and certain options are not popular? Do you trade?

SSF and IB

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