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The following reference table summarizes the basic reduced margin offset strategies available for capital shares:
Short capital share, with a conversion feature
Short capital share and short split share preferred share, both with a conversion feature
Short underlying security
Long capital share, with a conversion feature
offset available for long and short positions in same capital share
offset available for long and short positions in same capital share. Normal margin to be provided on short split share preferred share position
capital share can be converted into underlying security
- 5651(1)(i)
capital share can be converted into cash equivalent of unit value of underlying security
- 5651(1)(i) and 5651(1)(ii)
Long capital share and long split share preferred share, both with a conversion feature
offset available for long and short positions in same capital share. Normal margin to be provided on long split share preferred share position
offset available for long and short positions in same capital share and same split share preferred share
capital share and split share preferred share can be converted into underlying security
- 5652(1)(i)
capital share and split share preferred share can be converted into cash equivalent of unit value of underlying security
- 5652(1)(i) and 5651(2)(ii)
Long underlying security
offset available
- 5653(1)
offset available
- 5654(1)
offset available for long and short positions in same underlying security
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Other reduced margin offset strategies available for capital shares:
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offset involving long capital share and short call option contract positions - 5655
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There is no history log for this rule.