5783. Option spreads and combinations

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    1. Except as otherwise provided in this section 5783, the same reduced margin offsets are permitted for over‑the‑counter options as are provided in sections 5730 through 5772 for exchange‑traded options, provided that the underlying interest is the same.

    2. In the case of spreads involving European exercise over‑the‑counter options:

      1. a margin offset is permitted where the spread consists of long and short European exercise option contracts with the same expiration date, and

      2. a margin offset is permitted where the spread consists of a short European exercise option and long American exercise option, however

      3. a margin offset is not permitted where the spread consists of a long European exercise option and a short American exercise option.

    There is no history log for this rule.

    There is no history log for this rule.