|
Type of Security
|
Initial Requirement
|
Maintenance Requirement
|
|
Equities
|
|
5.01 & Above
|
50%
|
30%
|
|
Between 3.01 & 5.00
|
50%
|
50%
|
|
3.00 & Below
|
100%
|
100%
|
|
Debt
|
|
Municipal Bonds/G.O.s (minimum 7%
of principal)
|
25%
|
20%
|
|
Municipal Bonds/Revs. (minimum 7%
of principal)
|
35%
|
30%
|
|
Non-Convertible Bonds (minimum 7%
of principal)
|
30%
|
25%
|
|
O.T.C. Convertible Bonds
|
50%
|
30%
|
|
O.T.C. Non-Convertible Bonds (minimum
7% of principal)
|
30%
|
25%
|
|
Convertible Bonds
|
50%
|
30%
|
|
Corporate Bonds
|
|
Convertible & Non-Convertible
Bonds
|
|
|
|
Non-Investment Quality Bonds (BBB
and below) selling at discount of 50% or more to par.
|
Not Allowed
|
100%
|
|
Muni Bonds
|
|
Selling at a discount of 50% or more
to par.
|
Not Allowed
|
100%
|
|
U.S. Government Obligations
|
|
Less than one year to maturity.
|
2%
|
1%
|
|
One year but less than three years.
|
4%
|
2%
|
|
Three years but less than five years.
|
6%
|
3%
|
|
Five years but less than ten years.
|
8%
|
4%
|
|
Ten years but less than twenty years.
|
10%
|
5%
|
|
Twenty years or more.
|
12%
|
6%
|
|
Zero Coupon Securities (Type 75) with
five years or more to maturity shall maintain not less
than 3% of principal (face amount) with a $5.00 minimum
per bond. Short sales have a requirement of 5% more
than the long requirement on the same security.
|
|
Equity
|
|
Short Sales Below $5.00
|
Not Allowed
|
Greater of $2.50 a share or 100% CMV
|
|
$5.00 and above (round lots only)
|
50%
|
Greater of $5.00 a share or 35% CMV
|
|
Short Sales vs the box. Below $5.00
|
Not Allowed
|
10% of the long market value, Short
side rides free
|
|
$5.00 and above (Position long in
type 2)
|
50% Release
|
10% of the long market value, Short
side rides free
|
|
Options
|
|
Position Limit
|
Total 2,000 contract limit*
|
|
|
Naked Options Equities
|
20% of CMV minus out-of-the-money
plus premium close, less premium received. 10% minimum.
|
20% of CMV minus out-of-the-money
plus premium close. 10% minimum.
|
|
Index Narrow Based
|
Same as above
|
Same as above
|
|
Broad Based
|
Same as above
|
Same as above
|
|
Short Straddles
|
The requirements on the short call
and short put are computed as naked. The higher requirement
plus the current market value of the other option will
be required.
|
|
Naked Put Options Equities (small
investor- 10 contract limit- only strategy in place)
|
75% of strike Minimum $2,000
|
Same
|
|
Minimum Equity
|
|
Regular Margin
|
|
$2,000.00
|
|
Naked Options
|
|
$20,000.00
|
|
Maintenance Calls
|
|
Due in five (5) business days.
|
|
Mutual Funds/Closed End
|
|
Only Closed End Mutual Funds may be
purchased initially on margin.
|
|
Mutual Funds/Open End
|
|
Open End mutual funds can only be
purchased in the cash accounts. After 30 days of ownership,
they can be journaled to the margin account.
|
