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The minimum Dealer Member inventory margin and client account margin requirements for Government issued or guaranteed bonds, debentures, treasury bills, notes and certain other non-commercial securities not in default are as follows:
Term to maturity or redemption
Minimum margin required as a percentage of market value
Category (i)
Governments of Canada, United Kingdom, United States and national governments of countries with a high current credit rating
Category (ii)
Canadian provincial government, and obligations of the International Bank for Reconstruction and Development
Category (iii)
Canadian and United Kingdom municipal corporations
Less than 1 year
1.00%
x
number of
days to maturity
3652.00%
x
number of
days to maturity
3653.00%
x
number of
days to maturity
365Greater than or equal to 1 year and less than 3 years
1.00%
3.00%
5.00%
Greater than or equal to 3 years and less than 7 years 2.00% 4.00% Greater than or equal to 7 years and less than 11 years 4.00% 5.00% Greater than to equal to 11 years -
In subsection 5210(1) category (i), a country with a “high current credit rating” is a country that is currently rated Aaa by Moody’s or AAA by S&P Corporation.
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In subsection 5210(1) category (ii), British Columbia government guaranteed parity bonds, the margin requirement for a long position must be at least 0.25% of the par value of the bonds.
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If a security in subsection 5210(1) is redeemable and the security is called for redemption, the term to maturity is the term to the redemption date.
There is no history log for this rule.