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  • Margin Requirements

    • BC-8.9.19

      Before conducting a transaction with or for a retail customer, conventional bank licensees must notify the customer of:

      (a) The circumstances in which the customer may be required to provide any margin;
      (b) The form in which the margin may be provided;
      (c) The steps the conventional bank licensee may be required or entitled to take if the customer fails to provide the required margin, including:
      (i) The fact that the customer's failure to provide margin may lead to the conventional bank licensee closing out his position after a time limit specified by the firm;
      (ii) The circumstances in which the conventional bank licensee will have the right or duty to close out the customer's position; and
      (iii) The circumstances, other than failure to provide the required margin, that may lead to the conventional bank licensee closing out the customer’s position without prior reference to him.

      Added: April 2008

    • BC-8.9.20

      Conventional bank licensees must close out a retail customer's open position if that customer has failed to meet a margin call within a maximum of five business days following the date on which the obligation to meet the call accrues, unless:

      (a) The conventional bank licensee has received confirmation from a relevant third party (such as a clearing firm) that the retail customer has given instructions to pay in full; or
      (b) The conventional bank licensee has taken reasonable care to establish that the delay is owing to circumstances beyond the retail customer's control.
      Amended: January 2011
      Added: April 2008

    • BC-8.9.21

      For the purposes of Rule BC-8.9.20, conventional bank licensees may require the closing of a retail customer’s open position in less than five business days, for their own risk management purposes.

      Added: April 2008

    • BC-8.9.22

      Conventional bank licensees must also follow the requirements of Chapter BC-7 concerning the operation of the margin trading system.

      Amended: January 2011
      Added: April 2008