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5222. Bank paper not in default

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Series 5000: Dealer Member Margin Rules
    Rule

    1. The minimum Dealer Member inventory margin and client margin requirements for bank paper not in default are as follows:

      Term to maturity

      Minimum margin required as a percentage of market value

      Category (i)

      Bank acceptances, deposit certificates, promissory notes and debentures issued by a Canadian chartered bank

      Category (ii)

      Bank acceptances, deposit certificates, promissory notes issued by a foreign bank with a net worth (capital + reserves) of not less than $200 million

      Category (iii)

      Canadian and foreign category (i) and (ii) issues and obligations with a market value of 50% or less of par value and with a low current credit rating

      Within 1 year

      2.00%
      x
      number of days to maturity
      365

      50.00%

      Over 1 to 3 years

      6.00%

      Over 3 to 7 years

      7.00%

      Over 7 to 11 years

      10.00%

      Over 11 years
    Guidance/Notices

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    Disciplinary History
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      Jump to another section in Rule 5200
      5201. Introduction
      5210. Government issued or guaranteed bonds, debentures, treasury bills, notes and certain other non-commercial securities not in default
      5211. Government residual debt and stripped coupons not in default
      5212. Government floating rate debt obligations
      5213. Government mortgage-backed securities
      5214. Other non-commercial issuers not qualifying under sections 5210 through 5212
      5220. Commercial and corporate bonds, debentures, notes and other securities not in default
      5221. Convertible commercial and corporate bonds, debentures, notes and other securities not in default
      5223. Commercial residual debt and stripped coupons not in default
      5224. Convertible commercial residual debt not in default
      5225. Commercial and corporate floating rate debt obligations not in default
      5226. Commercial and corporate income bonds not in default
      5227. Commercial and corporate mortgage-backed securities
      5230. Debt securities in default
      5240. Circumstances under which debt margin surcharge is imposed
      5241. Determining debt margin surcharge
      5250. Mortgages

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