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 LSERM margin requirements are set out in subsection 5310(1) of the IIROC Rules, and the list's eligibility criteria are provided below.

Options Clearing Corporation (OCC) options

Securities against which options issued by the Options Clearing Corporation (“OCC”) are traded are also eligible for the reduced margin rates referenced above. Dealer Members are responsible for identifying these securities as IIROC only identifies inter-listed securities that have options issued by the OCC.

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 OCC issued options. IIROC compiles this section of the LSERM on a best efforts basis.

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 subsection 5330(1), 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

Price volatility measures

 

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

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

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)

Listing requirements

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
August 5, 2022 June 30, 2022

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IIROC Notice 22-0124

August 26, 2022
June 7, 2022 March 31, 2022

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IIROC Notice 22-0088

May 26, 2022
May 4, 2022 March 31, 2022

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IIROC Notice 22-0067

May 26, 2022
February 4, 2022 December 31, 2021

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IIROC Notice 22-0021

February 25, 2022
November 4, 2021 September 30, 2021

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IIROC Notice 21-0206

November 25, 2021
August 4, 2021 June 30, 2021

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IIROC Notice 21-0142

August 25, 2021
May 6, 2021 March 31, 2021

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IIROC Notice 21-0093

May 31, 2021