OFFSETS INVOLVING CAPITAL SHARES

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

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    1. Where a Dealer Member or a client holds a short capital share position and a long underlying common share position 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. lesser of:

        1. the sum of:

          1. the capital share conversion loss, if any, and

          2. the normal margin required on the equivalent quantity of split share preferred shares,

        2. and

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

      2. and

      3. 40% of the normal margin required on the underlying common shares.

    There is no history log for this rule.

    There is no history log for this rule.