5540. Individual underwriting concentration charge

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    1. Where:

      1. the margin required on any one commitment is reduced due to either:

        1. obtaining a new issue letter in accordance with section 5521, or

        2. qualifying expressions of interest received from exempt purchasers that have been verbally affirmed but not yet contracted in accordance with section 5522,

      2. and

      3. the margin requirement reduction in respect of such commitment (determined by comparing the margin requirement calculated in section 5521 or section 5522 with the margin requirement otherwise applicable and calculated in section 5520), exceeds 40% of such Dealer Member's net allowable assets,

      4. such excess shall be added to total margin required pursuant to Form 1. The amount to be deducted may be reduced by the amount of margin provided for as required by section 5521 or section 5522 on the individual underwriting position to which such excess relates.

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    There is no history log for this rule.