5112. Application of margin requirements – Dealer Member inventory positions

Section 5112 describes the calculations for determining margin requirements for long and short positions in Dealer Member inventory. It applies to Rules 5200 through 5900.

Dealer Member long inventory margin

A Dealer Member must provide margin for its long inventory positions in the amount calculated according to the formula:

1. applicable margin rate x market value of security, or

2. by any alternative method specified in the IIROC requirements.

Dealer Member short inventory margin

A Dealer Member must provide margin for its short inventory positions in the amount calculated according to the formula:

1. applicable margin rate x market value of security (expressed as absolute value), or

2. by any alternative method specified in the IIROC requirements.