12 C.F.R. § 220.12

Supplement: margin requirements

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The required margin for each security position held in a margin account shall be as follows:

(a) Margin equity security, except for an exempted security, money market mutual fund or exempted securities mutual fund, warrant on a securities index or foreign currency or a long position in an option: 50 percent of the current market value of the security or the percentage set by the regulatory authority where the trade occurs, whichever is greater.

(b) Exempted security, non-equity security, money market mutual fund or exempted securities mutual fund: The margin required by the creditor in good faith or the percentage set by the regulatory authority where the trade occurs, whichever is greater.

(1) 150 percent of the current market value of the security; or

(2) 100 percent of the current market value if a security exchangeable or convertible within 90 calendar days without restriction other than the payment of money into the security sold short is held in the account, provided that any long call to be used as margin in connection with a short sale of the underlying security is an American-style option issued by a registered clearing corporation and listed or traded on a registered national securities exchange with an exercise price that does not exceed the price at which the underlying security was sold short.

(d) Short sale of an exempted security or non-equity security: 100 percent of the current market value of the security plus the margin required by the creditor in good faith.

(e) Nonmargin, nonexempted equity security: 100 percent of the current market value.

(f) Put or call on a security, certificate of deposit, securities index or foreign currency or a warrant on a securities index or foreign currency:

(1) In the case of puts and calls issued by a registered clearing corporation and listed or traded on a registered national securities exchange or a registered securities association and registered warrants on a securities index or foreign currency, the amount, or other position specified by the rules of the registered national securities exchange or the registered securities association authorized to trade the option or warrant, provided that all such rules have been approved or amended by the SEC; or

(2) In the case of all other puts and calls, the amount, or other position, specified by the maintenance rules of the creditor's examining authority.

[Reg. T, 63 FR 2827, Jan. 16, 1998]

Notes of Decisions

Cited in 9 cases (1 in the last 5 years), 1998–2025 · leading case: Judith Goldman v. Citigroup Global Markets Inc, 834 F.3d 242 (3rd Cir. 2016).

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Judith Goldman v. Citigroup Global Markets Inc, 834 F.3d 242 (3rd Cir. 2016). · cites it 4× “§ 78g, 11 as well as its imple *256 menting regulation 12 C.F.R. § 220.12 , 12 when it concluded that no margin call had occurred.”

Fed. Sec. L. Rep. P 90,286 Raizy Levitin v. Painewebber, Inc., 159 F.3d 698 (2d Cir. 1998). · cites it 3× “See 12 C.F.R. § 220.12 (c)(1). The New York Stock Exchange imposes separate margin requirements for short sales.”

Marriott Int'l Resorts, L.P. v. United States, 586 F.3d 962 (Fed. Cir. 2009). “12 C.F.R. § 220.12 (c) (1994). 19 . Section 705 states that once the outside basis is determined under Sections 722 or 742, the basis is increased by the partner's respective share of income items.”

Gredd v. Bear, Stearns Sec. Corp. (In Re Manhattan Inv. Fund Ltd.), 310 B.R. 500 (Bankr. S.D.N.Y. 2002). “12 C.F.R. § 220.12 (c)(1); see id. The District Court ruled that until the seller covers the short sale, and "even when the short seller covers some of his short sales, the broker may only release these frozen funds to the extent that the customer's account balance exceeds the…”

WC Capital Mgmt., LLC v. UBS Sec., LLC, 711 F.3d 322 (2d Cir. 2013). “12 (a) (setting initial margin requirements for certain equity securities at “50 percent of the current market value of the security or the percentage set by the regulatory authority where the trade occurs, whichever is greater”); FINRA Rule 4210(c)(1) (requiring maintenance…”

Bear, Stearns Sec. Corp. v. Gredd, 275 B.R. 190 (S.D.N.Y. 2002). “12 C.F.R. § 220.12 (c)(1); see also Levitin, 159 F.”

Mishkin Ex Rel. Liquidation of the Bus. of Adler, Coleman Clearing Corp. v. Ensminger (In Re Adler, Coleman Clearing Corp.), 247 B.R. 51 (Bankr. S.D.N.Y. 1999). “12 C.F.R. § 220.12 (d)(2) (1995). 104 We read the regulation to provide that so long as the borrower was a market maker, the broker-dealer could extend it credit without regard to margin requirements contained in the Supplement, including the 100% margin requirement for…”

Marriott Int'l Resorts, L.P. v. United States, 83 Fed. Cl. 291 (Fed. Cl. 2008). “12 C.F.R. § 220.12 (c) (1994). . Section 705 states that once the outside basis is determined under Sections 722 or 742, the basis is increased by the partner's respective share of income items.”

GWA, LLC, George A. Weiss, Tax Matters Partner (Tax Ct. 2025). “See 12 C.F.R. §§ 220.12 , 221.7 (1998). Regulation X extended the limits imposed by Regulations T and U to cover credit from foreign lenders.”

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