Cause: Fed calls are issued when a customer makes a transaction in a margin account and does not meet the minimum initial margin requirements.
Due: Generally, Trade date + 5 business days (T + 5) to meet by depositing funds in the amount of the call. OptionsHouse may issue Fed calls T+1 at its discretion, based on risk and/or other factors.
Meeting the Call: Closure of a security(s) in an amount sufficient to generate Reg T margin release, deposit of funds in the amount of the call, or a deposit of fully-paid for, marginable securities that generate sufficient Reg-T release, will satisfy the call.
If the Fed call is not met by deposit on or before the due date, a liquidation strike may be issued.
Effective Friday, August 21, 2015, multiple Liquidation Strikes will
result in additional account restrictions as follows:
- First Liquidation Strike – Strike Issuance
- Second Liquidation Strike – Strike Issuance, Increased Margin Requirements for 30 Days
- Third Liquidation Strike – Strike Issuance, Increased margin Requirements for 90 Days
- Fourth Liquidation Strike – Strike Issuance, Liquidations Only (LO) for 90 Days
- Fifth Liquidation Strike – Strike Issuance, Liquidations Only (LO) for 90 Days
Note: If an account liquidates to meet a Fed call due to
assignment/exercise on the business day following the assignment/exercise
a liquidation strike will not be issued.