Margin requirements for cryptocurrency futures contracts 

GN-5700-21-001
Type: Rules Notice> Guidance Note
Rule connection:
IIROC Rules
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Executive Summary

Effective Date: December 31, 2021

With the launch of trading of cryptocurrency futures contracts on certain futures exchange in December 2017, this notice clarifies the minimum margin requirements for these futures contracts for Dealer Member (Dealer) inventory and client positions.

  1. Overview  

Under subsection 5790(6) of the IIROC Rules,1  IIROC may prescribe with respect to any particular or kind of person or account greater or lesser margin requirements than those prescribed or referred to in section 5790. 

  1. Margin requirements 

We are prescribing greater margin requirements for cryptocurrency futures contracts that trade on commodity futures exchanges than the margin requirements prescribed or referred to in section 5790, as set out below. For such exchange-traded cryptocurrency futures contract positions of Dealers and clients, a Dealer must mark to market and margin them daily at the greatest of: 

  1. 50% of market value of the contracts, 
  2. the margin required by the futures exchange on which the contracts are entered into, 
  3. the margin required by the futures exchange’s clearing corporation, and 
  4. the margin required by the Dealer’s clearing broker. 

This margin guidance is effective immediately. 

  1. Applicable Rules 

IIROC Rules this Guidance Note relates to: 

  • section 5790. 

  1. Previous Guidance Note  

This Guidance Note replaces Rules Notice 17-0238 - Margin requirements for cryptocurrency futures contracts. 

  1. Related documents  

This Guidance Note was published under Notice 21-0190 - IIROC Rules, Form 1 and Guidance.

  • 1In this Guidance, all rule references are to the IIROC Rules unless otherwise specified.