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The minimum Dealer Member inventory margin and client account margin requirements for the Government residual debt and stripped coupons 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
1.50%
x
number of
days to maturity
3653.00%
x
number of
days to maturity
3654.50%
x
number of
days to maturity
365Greater than or equal to 1 year and less than 3 years
1.50%
4.50%
7.50%
Greater than or equal to 3 years and less than 7 years
3.00%
6.00%
Greater than or equal to 7 years and less than 11 years
6.00%
7.50%
Greater than or equal to 11 years and less than 20 years
Greater than or equal to 20 years
12.00%
15.00%
15.00%
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In subsection 5211(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 5211(1), the maturity date of a coupon or other evidence of interest is the interest payment date.
There is no history log for this rule.