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Strategies & Market Trends : Margin Calls - Share The Pain

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To: marcos who wrote (139)	12/13/2000 6:52:46 AM
From: daffodil	of 158

Thanks, marcos, that's very helpful information. I always thought that it was probably a myth that one could short pennies in Canada without heavy margin requirements. Why would the Canadians want to take a chance on huge unsecured debit balances from a bunch of Yankees? <g> Actually, in the U.S. it is the Federal Reserve Board that regulates margin through Regulation T. They choose to delegate some of the margin requirements to the self-regulatory organizations (NYSE, NASD, CBOE and others). For example, on maintenance margin and on options, Reg T now defers to the SRO's. The SEC must then approve all rulemaking by the SRO's. So that's how the SEC gets into margin regulation. It's a bit convoluted, but it works :)

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