17 CFR 242.406 - Undermargined accounts.

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§ 242.406 Undermargined accounts.

(a)Failure to satisfy margin call. If any margin call required by this Regulation ( §§ 242.400 through 242.406) is not met in full, the security futures intermediary shall take the deduction required with respect to an undermargined account in computing its net capital under Commission or CFTC rules.

(b)Accounts that liquidate to a deficit. If at any time there is a liquidating deficit in an account in which security futures are held, the security futures intermediary shall take steps to liquidate positions in the account promptly and in an orderly manner.

(c)Liquidation of undermargined accounts not required. Notwithstanding Section 402(a) of this Regulation ( §§ 242.400 through 242.406), section 220.4(d) of Regulation T ( 12 CFR 220.4(d)) respecting liquidation of positions in lieu of deposit shall not apply with respect to security futures carried in a securities account.

Title 17 published on 09-Aug-2018 03:16

The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 17 CFR Part 242 after this date.

  • 2018-08-07; vol. 83 # 152 - Tuesday, August 7, 2018
    1. 83 FR 38768 - Regulation of NMS Stock Alternative Trading Systems
      GPO FDSys XML | Text
      SECURITIES AND EXCHANGE COMMISSION
      Final rule.
      Effective Date: October 9, 2018. Compliance Dates: The applicable compliance dates are discussed in the section of the release titled “VIII. Effective Date and Compliance Date.”
      17 CFR Parts 232, 240, 242, and 249