OFFSETS INVOLVING CAPITAL SHARES

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

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    1. Where a Dealer Member or a client holds a long capital share position, a long split share preferred share position and a short underlying common share position and equivalent quantities of all positions are held, the three positions may be offset and the minimum margin required for all positions may be computed as the sum of:

      1. lesser of:

        1. the combined conversion loss, if any, and 

        2. the normal margin required on the underlying common shares,

      2. and

      3. if the capital shares cannot be delivered to the split share company for retraction directly into the underlying security at the holder’s option, 20% of the margin otherwise required on the underlying common shares.

    There is no history log for this rule.

    There is no history log for this rule.