Proposed margin requirements for structured products

Date opened: February 25, 2021

Date closed: April 12, 2021

Status: Closed

Summary/details:

IIROC is proposing amendments to Dealer Member Rule (DMR) 100.2 and IIROC Rule 5400 that would allow margining of structured products using either a fixed rate or an alternative component margining methodology (Proposed Amendments).

The main purpose of the Proposed Amendments is to formally recognize a margin methodology for structured products as the current DMR and IIROC Rules do not specifically address margin requirements for these products.

The Proposed Amendments would:

  • require a margin rate of 70% for structured products that meet eligibility criteria, and
  • allow an alternative component-based margin methodology for structured products with a guarantee component.
Relevant documents:
Notices about this consultation: