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Posted On: 03/18/2021 11:27:31 AM
Post# of 8394
New Rules for Broker's Liquidity Deposits start 3/19
A Big Thanks to Gimme Greenbacks for alerting to this event.
Supplemental Liquidity Deposits are required to ensure that Brokers can complete all of their transactions. Existing Rules calculated an estimate of the last 2 years activity every month to arrive at the Deposit amount.
Starting tomorrow the SLD amount will be calculated Daily based on current data. If a Broker's SLD is low based on the previous day's activity they will be notified and be given 1 hour to Deposit the money and raise their SLD.
The main implications of the new Rules affect Options Trading and Naked Shorting.
Market Makers, which are Brokers, will be on a shorter leash in regards to Selling shares that they do not Own and have not Borrowed.
A Big Thanks to Gimme Greenbacks for alerting to this event.
Supplemental Liquidity Deposits are required to ensure that Brokers can complete all of their transactions. Existing Rules calculated an estimate of the last 2 years activity every month to arrive at the Deposit amount.
Starting tomorrow the SLD amount will be calculated Daily based on current data. If a Broker's SLD is low based on the previous day's activity they will be notified and be given 1 hour to Deposit the money and raise their SLD.
The main implications of the new Rules affect Options Trading and Naked Shorting.
Market Makers, which are Brokers, will be on a shorter leash in regards to Selling shares that they do not Own and have not Borrowed.
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