Instrument | | | Requirement |
A Debt | Maturity | 0-2 years | 2-5 years | >5 years |
Central Government | | 2% | 5% | 13% |
Qualifying debt securities | | | | |
· fixed rate | | 8% | 8% | 15% |
· floating rate | | 10% | 10% | 15% |
Non-qualifying debt securities | | | | |
· fixed rate | | 10% | 20% | 30% |
· floating rate | | 30% | 30% | 30% |
B Equities | | | | |
· Traded on a recognised or designated investment exchange. | 25% | | | |
· other | 100% | | | |
C Stock position in physical commodities | | | | |
· Physical positions associated with firm's investment business | 30% of realisable value | | |
D Derivatives | | | | |
· Exchange traded futures and written options | 4 x initial margin requirement. | |
· otc futures and written options | Apply the appropriate percentage shown in Sections A, B, & C above to the market value of the underlying position. |
· Purchased options | Apply the appropriate percentage shown in Sections A, B & C above to the market value of the underlying position but the result may be limited to the market value of the option. |
· Contracts for differences | 20% of the market value of the contract. |
E Other investments | | | | |
· units in regulated collective investment schemes | 25% of realisable value. |
· with profit life policies | 20% of surrender value. |
· other | 100% of the value of investment or underlying instrument. |
