On February 3, IIROC, as part of its
plain language rule re-write project, published a proposed series of
rules respecting margin requirements. The proposed
rules are intended to, among other things, clarify IIROC
expectations respecting certain rules, ensure that the rules
reflect current industry practice, ensure consistency with other dealer member rules
and streamline the decision making and rule interpretation
process.
A number of substantive revisions to current rules are also
proposed. These include new provisions setting out the steps a
dealer must take in deciding whether to allow a client to trade on
margin, requiring that dealers obtain a margin ruling from IIROC
staff when the margin treatment for a particular investment product
is not specified within IIROC rules, and setting out the margin
requirements for government and other non-commercial debt called
for redemption.
