Applicability. Each security futures intermediary
shall determine the required margin for the security futures and related positions
held on behalf of a customer in a securities account or futures account as
set forth in this section.
Required margin.
General rule. The required margin
for each long or short position n a security future shall be twenty (20)
percent of the current market value of such security future.
Offsetting positions. Notwithstanding
the margin levels specified in paragraph (b)(1) of this section, a self-regulatory
authority may set the required initial or maintenance margin level for
an offsetting position involving security futures and related positions
at a level lower than the level that would be required under paragraph
(b)(1) of this section if such positions were margined separately, pursuant
to rules that meet the criteria set forth in section
7(c)(2)(B) of the Exchange Act and are effective in accordance with
section 19(b)(2) of the Exchange
Act and, as applicable, Section 5c(c) of the CEA (7 U.S.C. 7a-2(c)).
Procedures for certain margin level adjustments.
An exchange registered under section 6(g)
of the Exchange Act, or a national securities association registered under
section 15A(k) of such Act, may raise
or lower the required margin level for a security future to a level not lower
than that specified in this section, in accordance with section
19(b)(7) of the Act.
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