Nasdaq Options Rule 6C

Key provisions:

• Margin framework: Establishes the collateral and margin requirements that members must collect and maintain for options positions and related securities positions to help manage credit and market risk.
• Customer and firm obligations: Sets standards for calculating, collecting, monitoring, and maintaining margin in customer and proprietary accounts, including requirements for short options and complex options strategies.
• Risk management and capital protection: Requires firms to maintain sufficient financial safeguards to cover potential losses, reduce counterparty risk, and promote market stability.
• Permitted margin treatment: Defines when offsets, spreads, hedged positions, and other risk-reducing strategies may qualify for reduced margin requirements.
• Compliance and oversight: Establishes recordkeeping, supervision, and ongoing monitoring requirements to ensure firms consistently satisfy margin obligations.