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  • Margin Requirements

    • BC-2.7.20

      Before conducting a transaction with or for a retail client, investment firm licensees must notify the client of:

      (a) The circumstances in which the client may be required to provide any margin;
      (b) The form in which the margin may be provided;
      (c) The steps the investment firm licensee may be required or entitled to take if the client fails to provide the required margin, including:
      (i) The fact that the client's failure to provide margin may lead to the investment firm licensee closing out his position after a time limit specified by the firm;
      (ii) The circumstances in which the investment firm licensee will have the right or duty to close out the client's position; and
      (d) The circumstances, other than failure to provide the required margin, that may lead to the investment firm licensee closing out the client's position without prior reference to him.
      Amended: January 2007

    • BC-2.7.21

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

      (i) The investment firm licensee has received confirmation from a relevant third party (such as a clearing firm) that the retail client has given instructions to pay in full; or
      (ii) The investment firm licensee has taken reasonable care to establish that the delay is owing to circumstances beyond the retail client's control.
      Amended: January 2007

    • BC-2.7.22

      For the purposes of Rule BC-2.7.21, investment firm licensees may require the closing of a retail client's open position in less than five business days, for their own risk management purposes.