5524. Margin requirements for a standby commitment to purchase securities under a rights offering

1. The minimum Dealer Member inventory margin requirement for a standby commitment to purchase securities under a rights offering is calculated in accordance with subsection 5524(2).

2. The margin required is:

   1. where the market value of the underlying security is greater than 125% of the subscription amount, nil,

   2. where the market value of the underlying security is greater than 110% but less than or equal to 125% of the subscription amount, 10% of the normal margin rate multiplied by the subscription amount,

   3. where the market value of the underlying security is greater than 105% but less than or equal to 110% of the subscription amount, 30% of the normal margin rate multiplied by the subscription amount,

   4. where the market value of the underlying security is greater than 100% but less than or equal to 105% of the subscription amount, 50% of the normal margin rate multiplied by the subscription amount, and

   5. where the market value of the underlying security is less than or equal to 100% of the subscription amount, the normal margin rate multiplied by the market value of the underlying security.

5525. - 5529.  Reserved.