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Two major regulatory agencies have agreed on a margin requirement for trading in single-stock futures, clearing the way for the start of the new vehicles.
"He's worried about the market being too high, but his argument that a margin requirement increase would make it harder for small investors to participate is in some sense saying, 'I don't want to spoil the party for them,' " Professor Sylla said.
Landmark, based in Houston, was expelled from the N.A.S.D. for using ads that understated the risks of day-trading, for lending money to a customer to meet a margin requirement, for violating restrictions on short-selling and for other offenses, the N.A.S.D. said.
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Each contract is pegged at one bitcoin, meaning volume exchanged has totaled about $7.7M with actual dollars traded being less since the contract only requires a 30% margin requirement.
Web Street granted the brothers a temporary extension, during which they set about trying to transfer their accounts to a different broker with a lower margin requirement.
Another option is a high margin requirement on the purchase of oil futures.
A 50% initial maintenance margin requirement results in a maximum initial leverage ratio of 2-to-1, or $2 of assets for every $1 of equity.
He argued that an increase in the margin requirement would be unfair to small investors because they would be unable to secure credit even as institutional investors could tap other sources of funds.
The margin requirement is the percent of a stock's price a buyer must put up to buy it the balance can be borrowed.
Left unsaid in the e-mail messages was that U.S. Clearing, a unit of FleetBoston, had raised the margin requirement on Wave Systems from 50percentto75percentcent.
A generation adequacy mechanism or planning reserve margin requirement remains under debate.
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