5113. Application of margin requirements — client account positions

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    1. Section 5113 describes the calculations for determining margin requirements for long and short positions in client accounts. It applies to Rules 5200 through 5900.

    2. Client accounts - loan value of long positions

      The loan value of a long position is generally calculated according to the formula:

      1. [100% - applicable margin rate %] x positive market value of the security, or

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

    3. Client accounts - loan value of short positions

      The loan value of a short client position is generally calculated according to the formula:

      1. [100% + applicable margin rate %] x negative market value of security, or

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

    4. Net loan value and status of a client account

      1. The positive and negative loan values in a client margin account must be totalled.

      2. If the total loan value in a client account results in a net positive loan value, the client may have a debit cash balance no larger than the positive loan value amount for the account to be in good standing.

      3. If the total loan value in a client account results in a net negative loan value, the cash balance in the margin account must be a credit equal to or larger than the net negative loan value for the account to be in good standing.

      4. If a client does not bring its account into good standing by depositing the required amount of margin into its account, subsection 5111(2) applies.

    There is no history log for this rule.

    There is no history log for this rule.