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

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    1. Where a Dealer Member or a client holds a long position in a convertible security which is not currently convertible and a short position in the underlying security and equivalent quantities of both positions are held, the two positions may be offset and the minimum margin required for both positions may be computed as the sum of:

      1. the conversion loss, if any,

      2. and

      3. 40% of the normal margin required on the underlying security.

    There is no history log for this rule.

    There is no history log for this rule.