CANADA: IIROC List of Securities Eligible for Reduced Margin

Thursday November 24 2016

The Investment Industry Regulatory Organisation of Canada (IIROC) has published a List of Securities Eligible for Reduced Margin (LSERM), which has been prepared using data available for the quarter ended September 30, 2016. This list must be used to identify securities eligible for reduced margin as set out in Dealer Member Rules 100.2(f)(vi) and 100.12(a)(i) of the IIROC Rule Book.

A separate section of this list details those Canada/United States inter-listed securities that have qualified for inclusion on the LSERM solely because they have options issued by the Options Clearing Corporation (OCC) traded against them. Consequently, Dealer Members are reminded that separate from this list, securities against which options issued by the OCC are traded, are eligible for reduced margin as set out in Dealer Member Rules 100.2(f)(vi) and 100.12(a)(ii).

Dealer Members have been further reminded that for securities that are convertible or exchangeable into securities on the LSERM, margin should be calculated according to Dealer Member Rule 100.21 Maximum margin IIROC Notice 16-0270 – Rules Notice Technical – Dealer Member Rules – List of Securities Eligible for Reduced Margin 2 required for Convertible Securities, which simply adds the conversion loss, if any, to the reduced margin rate.

Click on the link above for further details.