Common Questions

Q01. Support and Trading Hours

Q02. Easy To Borrow List

Q03. Account History

Q04. ECN & Trading Route Facts

Q05. Holiday Schedule

Q06. Scheduled Outages

Q07. Download Trading Software

Q08. Funding & Disbursements

Q09. Upgrade / Downgrade services

Q10. Margin Rates

Q11. Margin- What does it mean when I purchase securities on margin?

Q12. Margin- What can I do to better manage my margin account?

Q13. Margin- Day Trading Rules (Effective Sept. 28, 2001)

Q14. Margin- What does it mean when I get a margin call?

Q15. Margin- What is Daytrading & Overnight Buying Power?

Q16. What are SEC/FINRA TAF or ECN charges on my confirm?

Q17. When I log in I am getting authentication failed

Q18. I am logged in but not getting data

Q19. Account Opening Requirements

Q20. Exchange Agreements

Q21. What protects customer funds and securities at broker-dealers?

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Answers to Common Questions

A. B. Watley Direct Client Services normal hours of operation
Monday - Friday 8:00AM to 5:00PM

You can reach us [HERE]

Trading hours are Monday - Friday 8:00AM to 8:00PM

Click [HERE] for The Easy to Borrow List

Click [HERE] for Trade and Cash History

• GTC orders are executable only during regular market hours- 9:30 AM ET - 4 PM ET
• GTC orders will be rejected after Market Close at 4:00 PM ET
• MOC orders - Are available for LISTED securities. MOC orders must be entered prior to 3:40 p.m. and cannot be cancelled after 3:40PM

NSDQ ECN:

• Day orders that have not been executed by 3:59:59PM will be killed at 4:00PM ET
• NSDQ does not except Market orders, All or None orders, or GTC.
• Postmarket orders may be entered after 4:00:00 and are killed if unexecuted at 8:00PM.

NYSE ARCA ECN

• Day orders that have not been executed by 3:59:59PM will be killed at 4:00PM ET.
• Will accept Market orders during regular market hours (9:30 AM - 4:00 PM).
• Postmarket orders may be entered after 4:00:00 and are killed if unexecuted at 8:00PM.

We follow the New York Stock Exchange (NYSE) Holiday Schedule:

2010
New Year's Day	January 1
Martin Luther King, Jr. Day	January 18
Washington's Birthday/Presidents' Day	February 15
Good Friday	April 2
Memorial Day	May 31
Independence Day	July 5 (observed)
Labor Day	September 6
Thanksgiving Day	November 25
Christmas	December 24 (observed)

2011
New Year's Day	-
Martin Luther King, Jr. Day	January 17
Washington's Birthday/Presidents' Day	February 21
Good Friday	April 22
Memorial Day	May 30
Independence Day	July 4
Labor Day	September 5
Thanksgiving Day	November 24
Christmas	December 26 (observed)

Every Saturday, the system undergoes regular maintenance between the hours of 9AM to 2 PM EST. If any additional problems are identified during this time, which would require further action, the maintenance can last as long as, but no later than, Sunday at 5 PM EST. During this period, UltimateTrader will not be accessible.

There are no scheduled extensive outages at this time.

Follow the instructions below to download and install the software.

UltimateTrader
1. Please go to www.java.com and download the latest version of Java.
2. Download and install the latest Trading Software.
3. Enter your user id and password. If you do not have one yet, call Client Services.
4. After the download is completed you will need to complete the Exchange Agreements.

Additional information is available [HERE].

Please call us if you have questions or need help: Our contact information is listed [HERE]

Wire funds INTO your account

If you use these instructions with foreign currency, it will be converted to USD.
J.P. Morgan Chase Bank, NYC, ABA # 021000021
A/C Name: Penson Financial Services, Inc.
A/C # 066-6-00030
FCT: Your name and your A.B. Watley Direct, Inc. Account Number

Checks INTO your account

ALL CHECKS MUST BE MADE PAYABLE TO:
PENSON FINANCIAL SERVICES, INC.
WE DO NOT ACCEPT ANY THIRD PARTY OR CASHIER CHECKS.

Our mailing address is listed [HERE]

If you do not follow the guideline above for checkwriting, your account funding will be delayed.

Securities

Endorse your securities by appointing Penson Financial Services, Inc. as attorney and signing your name exactly as it appears on the face of the certificate(s).

Transferring Funds From Another Firm

Fill out the Account Transfer Form and include it with a copy of your most recent brokerage statement. Please note that most transfers take at least 15 business days.

Wire Funds OUT OF your account

• ABWD Account Number
• ABWD Account Name
• Amount in $US dollars
• Payment Method: wire
• Name and location of the bank
• Account number at the bank
• Name on the bank account (Name MUST match your AB Watley Direct account)

NO THIRD PARTY REQUEST WILL BE PROCESSED

Checks OUT OF your account

Please request checks using email address listed [HERE]

• ABWD Account Number
  
• ABWD Account Name
  
• Amount in $US dollars
  
• Payment Method: check

Please contact customer service at (888)733-9000

For current margin rates please contact customer service at (888)733-9000

When you use a margin account, you are borrowing money from a brokerage firm. When purchasing securities on margin you use a combination of your own funds and the funds you borrowed from the brokerage firm. These securities are the firm collateral for the loan. When the securities in your account decline in value, so does the value of the collateral supporting your loan.

If the value of the securities declines substantially, the brokerage firm will take action to shore up the value of the account by issuing a margin call.

Whether or not your firm chooses to issue a margin call, the firm has the right to liquidate securities in your account in order to meet its equity requirements for customer margin accounts.

Should your firm actually issue a margin call, it may give you a very limited time to satisfy the call. This time may be decreased from the amount of time that a firm may normally allow, in the event the markets are experiencing unusually volatile conditions.

This information pertains to the most common use of a margin account, i.e., purchasing securities on margin. Investors who sell securities short, which is also a margin transaction, should check with their firms to fully understand the impact that changes in market value have on their account.

Know your firm margin policies. Speak with your broker or check the firm Web Site for any changes in margin policies. Firms can make changes at their discretion, and are more likely to do so in volatile markets.

If you use a margin account, make sure you do not use all of your available funds to trade securities in the margin account.

You should retain a ready reserve of easily accessible cash (for example in a checking or savings account) so that you can promptly meet a margin call.

Manage your margin account. If you see that the securities in your margin account are declining in value, deposit additional funds in your account. These cash deposits will reduce your loan and lessen your chances of a margin call, as long as the value of the securities in your account do not continue to decline or you do not use the money to engage in even more securities transactions.

FINRA daytrading rules

Rule Overview:

All margin accounts will have daytrading buying power equal to FOUR TIMES maintenance excess; this is twice the current amount. Maintenance excess is defined as the amount of margin equity greater than 25% of the margin market value. Non-marginable stock and options are NOT included in this calculation. Please be aware that the daytrading buying power applies to marginable positions. When trading non-marginable stocks or options, the required buying power is four times the dollar amount of the trade. For example, $4,000 worth of buying power is needed to buy $1,000 worth of options. Please note that IRAs, UTMA, UGMA, and other cash-only accounts will receive buying power equal to the cash available. The "FOUR TIMES" rule does not apply for these accounts, and there is no difference between trading marginable and non-marginable securities.

The definition of daytrade has been modified slightly. As before, a daytrade is defined as the purchase and sale (or the short sale and purchase to cover) of a position on the same day. However, there is one important change. The liquidation and reopening of an overnight position is no longer considered a daytrade. The liquidation of an overnight position is considered simply to be a closing transaction under Regulation T. If it is reopened later in the day, it is considered an opening transaction under Regulation T. But, if this position were liquidated later in the day, the most recent opening and closing trades WOULD be considered a daytrade.

Pattern Day Trading

Pattern day trading is defined as FOUR OR MORE daytrades within a five business day period. Pattern Day Trading will only be allowed in accounts with at least $25,000 in total equity on the day of the trades. If an account has less than $25,000 in total equity, pattern daytrading will not be allowed.

Non-Pattern Day Trading

Non-pattern daytrading accounts are those accounts with less than $25,000 in total equity and/or accounts that do not daytrade more than three times in any five business day period. When they do daytrade, they will be entitled to use four times maintenance excess as daytrading buying power. The calculation to determine the level of equity in an account will take place at the end of each trading day. Intra-day calculations will not be made, so an account that temporarily falls below $25,000 equity during the day will not lose its eligibility to daytrade.

Dealing With Daytrade Calls under the New Rules:

Under the FINRA rules, if an account exceeds daytrading buying power, a daytrade call will be issued. As before, five business days will be allowed to meet the call. During the period before the daytrade call is met, the account will have only TWO TIMES maintenance excess for daytrading buying power. Furthermore, we will no longer be able to calculate the daytrading margin using the "time and tick" method, which allows daytrading repeatedly during the day. In other words, an account that has a daytrade call outstanding will have half of its normal daytrading buying power, and will only be able to utilize the daytrading buying power once. An account with $10,000 in daytrading buying power would be able to purchase marginable stock worth $10,000 and sell it, but would not be able to make another purchase for the rest of the day. Another way to think of it is that we would be required to calculate the total of all the opening transactions, regardless of whether or not they are closed that day. This clearly will limit the amount of purchases (or short sales) that can be made. The condition of limited trading capability will remain in effect until the daytrade call is met. If the daytrade call is not met by the deadline, the account will go on a 90 day restriction, which requires daytrading buying power to be reduced to ONE TIME maintenance excess, on a cumulative basis (as was the case when the account first generated the daytrade call). This restriction will continue until the 90 days are up or the daytrade call is met. Please note that the call may be met at any time during the 90 day restriction period.

A.B. Watley, along with our clearing firm, Penson Financial Services, will enforce a modification of the trading rules once a day trading call is incurred. If an account generates a daytrade call, NO buying power (daytrading or overnight) will be given to an account until either the call is met or the 5-day due date passes. If the call is not met by the due date, the account will go on the margin restriction described above, and Penson will restore buying power to the account as described under the FINRA rules (only one time maintenance excess with no time and tick). If the account generates another daytrade call during this 90 day restriction period, the client will have only one day to meet the call, and if the call is not met at this point, the account will be closed for 90 days. While the account is closed, only closing transactions will be allowed.

Please note that an important change to the rules (as of September 28) requires that funds used to meet a daytrade call must remain in the account for two business days. Previously, the funds needed to remain in the account for one day. The rules described above apply to ALL margin accounts, including accounts with less than $25,000 equity which are prohibited from daytrading more than three times in five business days.

Accounts that we are required to designate as pattern day traders that do not meet the minimum equity requirement of $25,000 will be sent an equity maintenance call requiring them to bring the equity up to $25,000. This call will be due two business days after it is issued. If the client fails to meet the call, the account will be restricted to buying power of ONE TIMES maintenance excess, on a cumulative basis (no time and tick calculations). This restriction will remain in effect for 90 days, or until the account reaches $25,000 equity.

When you execute a day trade with under $25,000 equity, your account will lose margin privileges and you will be restricted to closing transactions only until one or more of the following occurs:

• All margin debits are satisfied.
• Your equity is brought up/increases to $25,000.
• 90 days pass without any day trade transactions.
• If all margin debts are satisfied, you may resume trading in a cash account.

Answer being drafted, please contact Customer Support

Answer being drafted, please contact Customer Support

SEC = Take principal amount (shares * price) * $.0000418
FINRA TAF (Trading Activity Fee) = Take total number of shares * $.000075
ECN = See Q8 ' Funding & Disbursements ' above

This could only mean bad user ID or Password

We need exchange agreements if you have never filled these out, please check the appropriate link below:
Penson Agreements

Product	Ultimate Trader (Direct Access)	WatleyTrader (Web Access)
Account Opening Requirements
Opening Deposit	$5,000	$2,000
Account Opening Fee	$0	$0
Minimum balance	$1,000	$500
Income	$50,000	$50,000
Net Worth	$150,000	$150,000

In the past AB Watley Direct clients received market data directly from the NYSE, AMEX and NASDAQ via an agreement with AB Watley Direct. This data is now being provided by Penson Financial Inc. Because of this change all clients will be required to fill out new exchange agreements. There will be no change in the data you receive, only who is supplying it.

In order to facilitate the transfer and avoid any interruption of service it is necessary for you to fill out new "exchange agreements" with Penson. This documentation must be completed as quickly as possible to ensure the continuation of quote services. Please click on the link below: https://auth.nexatech.com/auth/hltn/signup.jsp

Under SEC rules, registered broker-dealers must maintain net capital to provide financial resources so that if the firm fails, customers will get their cash and securities back. Customer claims for their funds and securities are preferred over other claims on the broker-dealer.

The SIPC insures the cash and securities held by clients of member brokerage firms against the firm's bankruptcy. Funds in brokerage accounts are not insured against market fluctuations. SIPC coverage does not protect an investor from market losses. The SIPC offers brokerage customers up to $500,000 coverage for cash and securities, and coverage of cash is limited to $100,000.

In addition to the protection provided by the net capital rule and SIPC, registered broker-dealers must segregate customer funds and fully paid securities from the broker's own proprietary funds and securities. Thus, customer money and the firm's money are kept separate, protecting customers from any trading losses of the firm.

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