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5240. Circumstances under which debt margin surcharge is imposed

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Series 5000: Dealer Member Margin Rules
    Rule

    1. Higher margin requirements for debt securities, by way of a margin surcharge, may be established by IIROC in response to market conditions.

    2. IIROC monitors the price volatility of debt securities that Dealer Members trade, determines when a margin surcharge is required, and when it is no longer required.

    3. The margin surcharge required under this section 5240 is:

      1. 50% of the margin required in sections 5210 through 5226, and

      2. required for at least 30 days.

    4. A Dealer Member will be notified by IIROC of the imposition or revocation of a margin surcharge promptly following IIROC determining that the margin surcharge is, or is no longer, required. The notice is effective, and a Dealer Member must be in compliance with it, not less than five days after it is given.

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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
      5222. Bank paper 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
      5241. Determining debt margin surcharge
      5250. Mortgages

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