5370. Securities held in a Trader’s account

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    1. The minimum Dealer Member inventory margin for a security position held in a Trader’s account is 25% of the market value of such security provided:

      1. the Trader has responsibility or has “on post” trading privileges for the security,

      2. the security is eligible for margin pursuant to section 5311,

      3. the security does not qualify for a 25% margin rate pursuant to section 5311, and

      4. the security has traded at a value of at or above $2.00 per share for the previous calendar quarter.

    2. The reduced margin available under subsection 5370(1) may be applied to a maximum total security market value in all Trader’s accounts of:

      1. $100,000, if 90,000 shares of more of the security were traded in the previous calendar quarter, and

      2. $50,000, if less than 90,000 shares of the security were traded in the previous calendar quarter.

      3. The minimum Dealer Member inventory margin on security position amounts over $100,000 and $50,000, respectively, shall be the minimum margin otherwise required pursuant to section 5311.

    3. The reduced margin available for all security positions under subsection 5370(1) shall not exceed 50% of the Dealer Member’s net allowable assets.

    5371. - 5399.  Reserved.

    There is no history log for this rule.

    There is no history log for this rule.