Margin account.

CFR · 2024-01-01 · US · Title 12

(a) (2) A creditor may establish separate margin accounts for the same person to: (i) Clear transactions for other creditors where the transactions are introduced to the clearing creditor by separate creditors; or (ii) Clear transactions through other creditors if the transactions are cleared by separate creditors; or (iii) Provide one or more accounts over which the creditor or a third party investment adviser has investment discretion. (b) (2) (3) (4) (ii) When a security held in the account serves in lieu of the required margin for a short call, the security shall be valued at no greater than the exercise price of the short call. (5) (6) (7) (ii) A margin account that is transferred from one customer to another as part of a transaction, not undertaken to avoid the requirements of this part, may be treated as if it had been maintained for the transferee from the date of its origin, if the creditor accepts in good faith and keeps with the transferee account a signed statement of the transferor describing the circumstances for the transfer. (8) (c) (2) (3) (ii) The payment period may be extended for one or more limited periods upon application by the creditor to its examining authority unless the examining authority believes that the creditor is not acting in good faith or that (4) (d) (e) (i) Additional cash or securities are required to be deposited into the account for a transaction on the same or a previous day; or (ii) The withdrawal, together with other transactions, de

official document · source cfr-2024 · id 12:§ 220.4