OFFSETS INVOLVING CONVERTIBLE SECURITIES

5643. Offset where convertible security is held short

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    1. Where a Dealer Member or a client holds a long position in the underlying security and a short position in a convertible 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.