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Don Dion
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Don Dion (donalddion@gmail.com, @DRDInvestments) is the owner and Chief Investment Officer of DRD Investments, LLC, based in Naples, FL. and Williamstown, MA., a family office focused on managing a long/short hedge fund, real estate assets, venture capital, and various other financial assets for... More
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The Ultimate Guide to Trading ETFs
  • Leveraged ETF Margin Rules to Change 1 comment
    Sep 1, 2009 3:13 PM | about stocks: FAS, FAZ, EDZ, SRS, SKF

    In what could be a major blow to ultra-long and utra-short ETFs, the Financial Industry Regulatory Authority announced Tuesday that it would be raising margin requirements for leveraged ETFs on Dec. 1.

     

    In Regulatory Notice 09-53, FINRA notes that it will be implementing increased customer margin requirements for leveraged ETFs and uncovered options overlying leveraged ETFs.

     

    Leveraged ETFs like the Direxion Daily Financial Bull 3X (NYSEARCA:FAS) and Direxion Daily Financial Bear (NYSEARCA:FAZ) have become increasingly…READ MORE

    Stocks: FAS, FAZ, EDZ, SRS, SKF
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  • chilrum
    , contributor
    Comments (3) | Send Message
     
    Are there any brokerages that don't follow this requirement?

     

    I preferred the old margin rules -- if I have $300k in an account why should the brokerage care if I can lose $10k or $30k in one day of trading a 3X leveraged ETF ?

     

    Since it seems like this a requirement and not a guideline are there any brokerages that still use the original rules? If so, please send an e-mail to chilrum@yahoo.com to let me know and I will be quite grateful.
    12 Jul 2010, 08:46 PM Reply Like
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