Rule 6A — Margin Requirements In Respect of Margins from Customers for Marginable Futures

Rule Violation Whether composition may be offered Composition Amount which may be Offered by CDP, where CDP has Determined the Clearing Member to be Liable Mandatory minimum penalty imposable by the DC
Rule Chapter/Number Brief Description of Rule 1st Violation 2nd Violation 3rd Violation
Rule 6A — Margin Requirements
6A.2 Clearing Member to Procure Customer Margins for Marginable Futures Contract
6A.2.1 Clearing Member to procure Initial Margins and require customers to meet Customer Required Margins for Marginable Futures Contract Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
6A.2.2 Clearing Member to comply with requirements on the computation and monitoring of customer's margins Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
6A.2.3 Clearing Member not to allow Excess Margins to be withdrawn unless withdrawal does not cause the deposited collateral to be less than zero. Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
6A.3 Margin Management for Clearing Members in Respect of Margins from Customers for Marginable Futures Contracts
6A.3.1 Clearing Member not to accept new orders or trades in Marginable Futures Contracts for clearing from any customer unless the specified conditions are met Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
6A.3.2 Clearing Member to call for additional margins from its customer if the Customer Asset Value falls below the Customer Required Margins Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
6A.3.6 In respect of Marginable Futures Contracts, Clearing Member not to set margin requirements that are less stringent than those prescribed by CDP Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
6A.4A Margin Management for Clearing Members In Respect of Any Margins from Cu
6A.4A.1(3) Clearing Member to comply with CDP's directions to take such action to offset all or part of the positions to rectify a margin deficiency Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
6A.5 Clearing Members to Deposit Margins with CDP
6A.5.1 Clearing Member to deposit Clearing Member Required Margins with CDP Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
6A.5.4 Clearing Member not to deposit with CDP, monies and assets for its customer for the purpose of meeting Clearing Member Required Margin for Novated Contracts other than Marginable Futures Contracts Not Compoundable Not Compoundable $10,000
6A.6 Monies and Assets Acceptable by CDP as Margins
6A.6.4 Clearing Member to notify CDP as to whether Collateral is to be maintained solely as margin for Customer Accounts or otherwise. Not Compoundable Not Compoundable $10,000
6A.9A Additional Margins
6A.9A.2 Clearing Member to deposit additional margins with CDP by such time as CDP shall specify and in such form as CDP prescribes Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
6A.10 Segregation of Customer's Money and Assets
6A.10.1(1) Clearing Member to comply with the customer segregation requirements under the Rules and the SFA Not Compoundable Not Compoundable $10,000
6A.10.1(2) Clearing Member to ensure that CDP is at all times provided with such information as it requires to discharge its segregation obligations under the SFA and/or enable CDP to issue the Authority with the verification of margin funds statement placed with CDP as required under the SFA Not Compoundable Not Compoundable $10,000
6A.11 Notification of Under Segregation
6A.11.1 Every Clearing Member shall immediately report to CDP of any under-segregation of moneys or assets as required under the Rules of the SFA Not Compoundable Not Compoundable $10,000
6A.12 [deleted]
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6A.14 Under-Margined Accounts
6A.14.1 Clearing Member to immediately notify CDP when any account does not comply with the Customer Required Margins by an amount which exceeds its aggregate resources Compoundable $2,000 – $4,000 $4,000 – $7,000 $7,000 – $10,000 N.A.
6A.15 [deleted]
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Added on 16 May 201116 May 2011 and amended on 21 January 201321 January 2013 and 29 July 201329 July 2013.