home home  
 
 
 
 
 
 

List of securities eligible for reduced margin (LSERM)



This list is published quarterly and identifies securities that qualify for a reduced margin rate of 30% for client positions and 25% for Dealer Member (inventory) positions which are:

  1. listed on the Toronto Stock Exchange (TSX), TSX Venture Exchange (TSXV), or NEO Exchange, or

  2. inter-listed on the TSX and on a U.S. exchange.

The reduced margin rate represents the prescribed minimum regulatory margin requirement. For the purposes of margin lending, Dealer Members may set higher "house" margin rates at their discretion.

The reduced margin rules are as set out in Dealer Member Rules 100.2(f)(vi) and 100.12(a), and the list's eligibility criteria are provided below. 

Options Clearing Corporation (OCC) options

A separate section of this list details those Canada or United States inter-listed securities that have qualified for inclusion on the LSERM solely because they have options issued by the Options Clearing Corporation ("OCC") traded against them. IIROC compiles this section of the LSERM on a best efforts basis. Dealer Members are reminded that separate from this list, securities against which options issued by the OCC are traded, are eligible for reduced margin as set out in Dealer Member Rules 100.2(f)(vi) and 100.12(a)(ii). 

Convertible or exchangeable securities

Although not included on this list, there are securities that are convertible or exchangeable into securities on the LSERM. These convertible or exchangeable securities are margined according to Dealer Member Rule 100.21 - Maximum margin required for Convertible Securities, which adds the conversion loss, if any, to the reduced margin rate requirement.

Eligibility criteria

The security must meet the following requirements to be eligible for inclusion on the list:

General inclusion requirements
  1. Price volatility measures


  1. Calculated price volatility margin interval <= 25% and

  2. Market value per share >= $2.00 per share

  1. Liquidity measures



  1. Dollar value of public float greater than $100 million and

  2. Average daily trade volume for each month in the quarter ended >= 25,000 shares per day

    OR

    An equivalent average daily traded value amount for each month in the quarter ended >= $1,000,000 per day (to accommodate high price securities)

  1. Listing requirements


  1. Listed on a Canadian exchange eligible for margin for six months

    OR

    Listed on a Canadian exchange eligible for margin less than six months, with:

    1. market value per share >= $5.00 per share,

    2. dollar value of public float greater than $500 million, and

    3. in the discretion of IIROC staff, the issuer company is in an industry sector known for low price volatility


Other inclusion requirements


A new security listing resulting from an issuer reorganization that:

  1. is substantially the same as a previous security listing,

  2. has a combined calculated price volatility margin interval for the old and the new listings of <=25%, and

  3. meets all the other General inclusion requirements for ongoing listings.

For the purposes of this requirement, the term "substantially the same" means a new security listing that represents between 80% and 120% of the public float of a previous security listing.


A Canada/United States inter-listed security against which options issued by the OCC are traded.
A security that is senior to a security that meets the General inclusion requirements or Other inclusion requirements above, or is a related common security from that same issuer.


LSERM

Release date ​Quarter-end date ​LSERM ​Effective date

May 6, 2021

March 31, 2021
​Download in ZIP Format

IIROC Notice
21-0093


May 31, 2021
       tool bar