5701. Introduction

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    1. Rule 5700 addresses the margin treatment of derivative product positions that comprise reduced‑risk offset strategies. The margin requirements for these strategies are generally less than if the positions are margined separately. Reduced margin in some cases is available for both Dealer Member inventory and client account offset strategies and in other cases is available for only Dealer Member inventory offset strategies. The derivative products covered in Rule 5700 include exchange‑traded options whose underlying interests include:

      • equities
      • indexes
      • index participation units
      • debt
      • currencies
    2. and over‑the‑counter options, futures contracts and futures contract options.

    3. The order of subjects in Rule 5700 is:

      1. general requirements and summary reference tables  [sections 5710 through 5715],

      2. exchange‑traded options,

        1. unhedged option positions [sections 5720 through 5721],

        2. hedged option positions [section 5725],

        3. option spreads and combinations [sections 5730 through 5740],

        4. security and option combinations and conversions [sections 5750 through 5755],

        5. futures and options combinations and conversions [sections 5760 through 5765],

        6. basket, participation unit and futures combinations [sections 5770 through 5772], and

        7. cross index offsets and the optional use of the Standard Portfolio Analysis methodology [sections 5775 and 5776],

      3. over‑the‑counter options [section 5780], and

      4. futures contracts and futures contract options [section 5790].

    5702. - 5709.  Reserved.

    There is no history log for this rule.

    There is no history log for this rule.