4607. Cash and securities loans with other counterparties

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    1. When a cash or securities loan is between a Dealer Member and a party to which neither section 4605 nor 4606 applies, a Dealer Member must comply with subsections 4607(2) and 4607(3).

    2. Securities pledged as collateral must:

      1. be held by:

        1. the Dealer Member in segregation

        2. an acceptable clearing corporation, or

        3. a bank or trust company that is either an acceptable institution or an acceptable counterparty under an escrow agreement. The escrow agreement must be between the Dealer Member and the depository, institution, or counterparty and must be in a form acceptable to IIROC,

      2. either:

        1. be securities with a margin rate of 5% or less, or

        2. be preferred shares or debt securities, convertible into common shares of the class borrowed.

    3. If a Dealer Member does not comply with subsection 4607(2) or clause 4603(3)(i), its net allowable assets are subject to a charge calculated in the same manner as for client account short securities balances.

    4608. - 4699.  Reserved.

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