Hi,
This applies to only Portfolio margin accounts.
There is a lien on all the assets, even the fully paid ones, not just 140% of the margin loan like the RegT margin.
Source: https://www.finra.org/rules-guidance/notices/07-14
How much should one be worried of having a portfolio margin account ?
Is some broker(Ex: Fidelity VS E-Trade) better than other for portfolio margin account ?
OCC risk is common across brokers, so changing brokers doesnot remove OCC insolvency risk, applicable to only long options.
Broker-dealer's lien is on all all long Stocks and ETFs
Does this dissuade enough to not have Portfolio margin accounts ?
P.S. I am having synthetic long call options [Stock + put + margin] to get better tax treatment over straight up long calls.
This arrangement works only in Portfolio margin account.
Thank you.