List of securities eligible for reduced margin (LSERM)

This list is published quarterly and identifies securities that qualify for a reduced margin rate of 30% for client positions and 25% for Investment Dealer Member (inventory) positions which are:

1. listed on the Toronto Stock Exchange (TSX), TSX Venture Exchange (TSXV), Cboe Canada, Canadian Securities Exchange, or
2. inter-listed on the TSX and on a U.S. exchange.

The reduced margin rate represents the prescribed minimum regulatory margin requirement. For the purposes of margin lending, Investment Dealer Members may set higher “house” margin rates at their discretion.

The LSERM margin requirements are set out in subsection 5310(1) of the Investment Dealer and Partially Consolidated Rules (IDPC Rules), and the list's eligibility criteria are provided below.

Options Clearing Corporation (OCC) options

Securities against which options issued by the Options Clearing Corporation (“OCC”) are traded are also eligible for the reduced margin rates referenced above. Investment Dealer Members are responsible for identifying these securities as CIRO only identifies inter-listed securities that have options issued by the OCC.

A separate section of this list details those Canada or United States inter-listed securities that have qualified for inclusion on the LSERM solely because they have OCC issued options. CIRO compiles this section of the LSERM on a best efforts basis.

Eligibility status for cryptocurrency funds

Until further notice, cryptocurrency funds are not eligible for reduced margin. This eligibility status also applies to cryptocurrency funds against which OCC options are traded. For cryptocurrency funds, margin eligibility may be otherwise determined according to the requirements set out in subsections 5310(1) and 5311(1) of the IDPC Rules.

Convertible or exchangeable securities

Although not included on this list, there are securities that are convertible or exchangeable into securities on the LSERM. These convertible or exchangeable securities are margined according to subsection 5330(1), which adds the conversion loss, if any, to the reduced margin rate requirement.

Eligibility criteria

The security must meet the following requirements to be eligible for inclusion on the list:

LSERM