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For a private placement of an equity security subject to a four-month trading restriction (pursuant to National Instrument 45-102 or a similar provincial securities laws exemption), an alternative approach to margining is permitted. The alternative approach is set out in subsection 5523(2).
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The margin rate to be used for the private placement during the distribution period shall be the greater of:
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the margin rate that would be otherwise applicable to the security if the restriction were not present, subject to the margin rate reductions available in sections 5520 through 5522, and
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(a) where it is five business days or less subsequent to the commitment date, 25%,
(b) where it is greater than five business days subsequent to the commitment date, 50%, and
(c) where it is on or after the offering settlement date, 100%.
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There is no history log for this rule.