OFF TOPIC but affects all Interactive Broker clients....
I received the following from Interactive brokers and I encourage others to e-mail IB and protest:
INCREASE IN MARGIN REQUIREMENT FOR SMALL-CAP STOCKS
Over a 4 day period, commencing at the end of the trading day on 30 October 2008, margin requirements for stocks with low market capitalization (under $100 million USD) and/or limited market liquidity will increase from the default margin [maintenance margin @ 25%, short margin @ 30%]. The increases will go through in a series of steps, between trading sessions, as follows:
• Day 1 (2008.10.30): maintenance: 35%, short margin 50%
• Day 2 (2008.10.31): maintenance: 50%, short margin 50%
• Day 3 (2008.11.03): maintenance: 75%, short margin 75%
• Day 4 (2008.11.04): maintenance: 100%, short margin 100%
It appears you have one or more of the following stocks that may be affected by the margin change in your account XXXXXXX:
MIND@NASDAQ, RAME@NASDAQ, CS@TSE, PXX@TSE
Please examine your portfolio to determine if these increases will create any capital (margin) deficiency in your account. If it appears there may be a capital deficiency, we recommend adding capital, or reducing positions/risk to anticipate the change in margin requirements.
MY comment to them .......
IB Risk Management,
Most of the companies that I have with under a 100 million market cap, it is a anomaly created by this freakish market. You are creating/ forcing losses on your customers. When this is all over, I look forward in transferring my entire account to another firm. I am good for normal margin calls……….but going to 100% cash is asinine of you.
MY NAME
