5523. Alternative approach to margining of private placements of restricted equity securities during the distribution period

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).

The margin rate to be used for the private placement during the distribution period shall be the greater of:

1. 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

2. (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%.