| Borrow via Cash and Cash Balance Account | Borrow via Credit Balance Account | ||
|---|---|---|---|
| Initial Margin (IM) | 150% | Initial Margin (IM) | 50% |
| Maintenance Margin (MM) | 140% | Maintenance Margin (MM) | 40% |
| Force Closed Margin (FM) | 120% | Force Closed Margin (FM) | 30% |
| Call Margin Company will calculate the value of the collateral compared to the value of the borrowed securities at the closed price at the end of the day. (Mark to Market) |
|
|---|---|
| Case I : The value of the collateral is less than the MM level | |
| Borrow via Cash and Cash Balance Account | Borrow via Credit Balance Account |
| Borrower has to top up the collateral to the rate equal to or higher than the MM level. | Borrower has to top up the collateral to the rate equal to or higher than the MM level. |
| Borrower has to top up additional collateral before 15.30 on T+1 date and not allowed borrower to borrow more securities until the collateral is placed. | Borrower has to top up additional collateral within 5 business days and not allowed borrower to borrow more securities until the collateral is equal to or higher than the MM level. |
| If borrower fails to top up, company reserves the right to buy back securities (Force Buy In) within T+2 date. | If borrower fails to top up, company reserves the right to buy back securities (Force Buy In) within T+6 date. |
| Force Close Margin | |
|---|---|
| Case II : The value of the collateral is less than the FM level | |
| Borrow via Cash and Cash Balance Account | Borrow via Credit Balance Account |
| Borrower has to top up additional collateral to the rate higher than the FM level before 9.45 on T+1 date. | Borrower has to top up additional collateral to the rate higher than the FM level before 9.45 on T+1 date. |
| If borrower fails to top up, company reserves the right to buy back securities within T+1 date. | If borrower fails to top up, company reserves the right to buy back securities (Force Buy In) within T+1 date. |
* Client needs to be responsible for the fees and any expenses for forced sale/repurchase activities.
**In the event of a forced sale of borrowed securities, if the collateral is insufficient to repay the debt, borrower must repay such debt in full amount within T+2 date for Cash and Cash Balance Account or T date for Credit Balance Account.
Client can place the initial cash value equal to 50% of securities value on the first borrowing day and another 100% from the sale proceed of the short position. If borrower cannot complete short position on T date, borrower has to place another 100% of cash collateral on T+1.
Client can use securities in his/her portfolio as collateral in CB account. The margin calculation is based on Company Announcement.