How would a non-margin equity security be handled in a portfolio margin account?
A customer is not permitted to obtain a risk-based margin value for a non-margin equity security in a portfolio margin account. However, a non-margin equity security, whether held in a portfolio margin account, cash account, or strategy-based margin account, must have a 100 percent regulatory maintenance requirement applied on a daily basis if the broker-dealer is combining the maintenance excess figures. This is to preclude the possibility of a customer paying 100 percent for the purchase in a cash account, transferring the security to a portfolio margin account, and then using the excess maintenance loan value for withdrawals or additional transactions. If the broker-dealer keeps the portfolio margin excess figures separate and independent from any other excess figures, then this requirement does not apply.
