5790. Minimum margin requirements 

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    1. Where a Dealer Member inventory or client account contains positions in futures contracts or futures contract options, the margin required is the greatest of:

      1. the margin required by the commodity futures exchange on which the contract is entered into,

      2. the margin required by the clearing corporation, and

      3. the margin required by the Dealer Member’s clearing broker, where applicable.

      4. provided that where a Dealer Member or a client owns a commodity and such ownership is evidenced by warehouse receipts or comparable documentation and such Dealer Member or client also has a short position in futures contracts in the same commodity, the two positions may be offset and the required margin shall be computed with respect to the net long or net short position only.

    2. Where a commodity futures exchange or its clearing corporation prescribes margin requirements based on initial and maintenance rates, the margin required at the time the contract is entered shall be based on the prescribed initial rate. When subsequent adverse price movements in the value of the contracts reduce the margin on deposit to an amount below the maintenance level, a further amount to restore the margin on deposit to the initial rate amount shall be required. The Dealer Member may, in addition, require such further margin or deposit against liability as it may consider necessary as a result of fluctuations in market prices from time to time.

    3. Where client trades are executed through an omnibus account, the Dealer Member shall require margin from each of its clients as though the trades were executed in separate fully disclosed accounts.

    4. Where spread margins are permitted in a client account, the Dealer Member shall note this in the margin records for this account.

    5. Where a Dealer Member’s inventory account holds inter-commodity spreads in Government of Canada bond futures contracts and U.S. treasury bond futures contracts traded on acceptable exchanges in Canada and the United States and equivalent quantities of each position in the spread are held, the margin required is the greater of the margin required on either the long side or the short side only. For this purpose, the foregoing spreads shall be on the basis of $1.00 Canadian for each $1.00 U.S. of the contract size of the relevant futures contracts. With respect to the United States side of the above inter-commodity spreads, such positions must be maintained on a contract market as designated pursuant to the United States Commodity Exchange Act.

    6. IIROC may prescribe, in its discretion, higher or lower margin requirements for any account or person that holds positions in futures contracts or futures contract options.

    5791. - 5799.  Reserved.

    There is no history log for this rule.

    There is no history log for this rule.