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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 a designated rating organization.
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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.
Notice 21-0028 - Amendments to Dealer Member Rules [IIROC Rules] and Form 1 regarding the securities concentration test and designated rating organizations