k. Regulation-T Call (RT Call) US Options & Futures

Reg-T Call (RT Call)

Similar to an RM call, a Reg-T call is usually issued after an assignment or auto-exercise of an option if there is insufficient account equity (overspending the account).

A Reg-T (RT) call is issued when a margin account makes a transaction that exceeds the buying power available to them.

When is a Reg-T Call due?

Reg-T calls are generally due 3 trading days after the call is generated (T+3). However, we reserve to request the call to be met sooner.

How can I meet the Reg-T call?

By Deposit

Reg-T calls can be met by depositing additional funds.

Closing Positions

Closing positions may satisfy a Reg-T call, provided they generate sufficient margin release. Closing positions to meet a Reg-T call will result in a liquidation strike (liquidation strikes can be used up to 4 times, the 5^th liquidation strike will result in a 90 day closing only restriction, as per FINRA rules). Reg-T calls not met by a deposit by their due date will result in a liquidation strike. Multiple liquidation strikes within a rolling calendar year will result in the following:

Liquidation Strikes 1-4: Strike Issued

Liquidation Strike 5+: 90-day restriction (Closing only)

Please note: Liquidations that occur on the day following an exercise/assignment will not be issued a liquidation strike.

*Liquidation strikes occur when you sell any current positions to meet a RT call. While liquidation strikes are governed by FINRA, most traders do not run into the 90-day closing only restriction via a 5^th strike.

How do I know if I met the Reg-T Call?

Positive Buying Power = Call is Met

Generally, if you are in a Reg-T call your options buying power is negative. When depositing funds or securities, the amount must be equal to or greater than the negative buying power amount. When making a deposit, we suggest going a little over your negative buying power amount to allow yourself a cushion. However, if you are closing positions, then you'll know if you met the call once your buying power returns positive.