OFFSETS INVOLVING WARRANTS, RIGHTS, INSTALLMENT RECEIPTS AND OTHER EXERCISABLE SECURITIES

5661. Offset where exercisable security is held long and is currently exercisable

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    1. Where a Dealer Member or a client holds a long position in an exercisable security which is currently exercisable 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 exercise loss, if any,

      2. and

      3. for client account positions, the amount of the exercise or subscription payment,

      4. and

      5. if the exercisable security cannot be converted directly into the underlying security at the holder’s option, 20% of the normal margin required on the underlying securities.

    There is no history log for this rule.

    There is no history log for this rule.