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5561. Margin for hedged positions

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Series 5000: Dealer Member Margin Rules
    Rule

    1. Subject to subsections 5561(3) and 5561(4), the minimum Dealer Member inventory margin and client account margin required for hedged positions resulting from purchases of securities trading on a when issued basis that are subsequently sold on a when issued basis is the normal margin required for a long position in the security.

    2. Subject to subsections 5561(3) and 5561(4), the minimum Dealer Member inventory margin and client account margin required for hedged positions resulting from purchases of securities trading on a when issued basis that are subsequently sold for settlement into the regular market is the normal margin required for a short position in the security.

    3. Dealer Member inventory margin shall be posted on the trade date of the purchase.

    4. Client account margin shall be posted on the second settlement day after the trade date of the sale.

    Guidance/Notices
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      Jump to another section in Rule 5500
      5501. Introduction
      5510. Underwriting commitment amount
      5520. Margin requirements for underwriting commitments where a new issue letter has not been obtained
      5521. Margin requirements for underwriting commitments where a new issue letter has been obtained
      5522. Margin requirements for underwriting commitments where expressions of interest from exempt purchasers have been affirmed
      5523. Alternative approach to margining of private placements of restricted equity securities during the distribution period
      5524. Margin requirements for a standby commitment to purchase securities under a rights offering
      5530. New issue letter
      5540. Individual underwriting concentration charge
      5541. Overall underwriting concentration charge
      5550. Long qualifying basket of index securities – Short index participation units – Commitment to purchase index participation units 
      5551. Long qualifying basket of index securities – Short index participation unit call options – Commitment to purchase index participation units
      5552. Long qualifying basket of index securities – Long index participation unit put options – Commitment to purchase index participation units
      5560. Margin for short positions
      5562. Margin for long positions

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