OFFSETS INVOLVING CONVERTIBLE SECURITIES

5640. Summary reference table

The following reference table summarizes the basic reduced margin offset strategies available for convertible securities:

	Short convertible security	Short underlying security
Long convertible security	currently convertible offset available for long and short positions in the same security	currently convertible - offset available where: convertible into the underlying security - 5641(1)(i) convertible into the cash equivalent of the unit value of the underlying security - 5641(1)(i) and 5641(1)(ii)
Long convertible security	not currently convertible offset available for long and short positions in same security	not currently convertible - 5642(1)
Long underlying security	offset available - 5643(1)	offset available for long and short positions in the same security

Other reduced margin offset strategies available for convertible securities:
1. offset relating to a pending amalgamation, acquisition, spin-off or other securities related reorganization transaction - 5644

Guidance/Notices

There is no history log for this rule.

Disciplinary History

There is no history log for this rule.

Jump to another section in Rule 5600

5601. Introduction

5610. Summary reference tables

5611. Government debt securities of same issuer and both maturing within one year

5612. Government debt securities of same issuer with same maturity band and both maturing in greater than or equal to one year

5613. Government debt securities with different maturity bands

5614. Government debt securities of different issuers with same maturity band

5615. Offsets involving government debt securities and strip coupons or residuals

5616. Offsets involving government debt securities and government guaranteed mortgage-backed securities

5617. Offsets involving government debt securities and Government of Canada notional bond futures contracts with same underlying issuer and same maturity bands

5618. Other offsets involving government debt securities and Government of Canada notional bond futures contracts

5620. Summary reference tables

5621. Commercial and corporate debt securities of same issuer with same maturity band

5622. Offsets involving Canadian chartered bank acceptances and Canadian bankers acceptance futures contracts with same maturity bands

5623. Offsets involving commercial and corporate debt securities and strip coupons or residuals

5624. Offsets involving commercial and corporate debt securities and Government of Canada notional bond futures contracts

5630. Summary reference table

5631. Government and commercial corporate debt securities with same maturity band

5641. Offset where convertible security is held long and is currently convertible

5642. Offset where convertible security is held long and is not currently convertible

5643. Offset where convertible security is held short

5644. Offset relating to a pending amalgamation, acquisition, spin-off or other securities related reorganization transaction

5650. Summary reference tables

5651. Offset involving long capital share and short underlying common share positions

5652. Offset involving long capital share, long split share preferred share and short underlying common share positions

5653. Offset involving short capital share and long underlying common share positions

5654. Offset involving short capital share, short split share preferred share and long underlying common share positions

5655. Offset involving long capital share and short call option contract positions

5660. Summary reference tables

5661. Offset where exercisable security is held long and is currently exercisable

5662. Offset where exercisable security is held long and is not currently exercisable

5663. Offset where exercisable security is held short

5670. Offsets involving callable, extendible and retractable debt securities

5671. Offsets involving Canadian government debt or Canadian listed equity securities and futures and forward contracts

5680. Offset involving two interest rate swaps

5681. Offsets involving interest rate swaps and federal government debt securities

5682. Offsets involving total performance swaps and underlying securities