Whenever a stock suspends, our corporate actions and risk departments will review it internally and confirm whether it is likely to trade again. If it isn’t – or if the news surrounding the company is negative – we’ll notify anyone with an open position on the stock that its margin requirement is going to be amended to 100%.
The margin requirement will remain at 100% until there is further news in the underlying market (e.g. relisting or delisting) which we will then reflect in due course.
Overnight interest fees and short borrowing fees are still charged for suspended shares as we still pay these fees to our trading partners. These positions will remain open until a declaration of worthless shares has been made and liquidation has been completed.
Please refer to terms 25 of our customer agreement for more information regarding suspension and insolvency of shares.
Please note: This information is intended as a generic example, and subject to change at any point. It may not apply in every scenario.
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