What is a “Reg. T” Call?
A “Regulation T Call” is issued when the initial equity for the purchase of a marginable security in your account is below the minimum required by the Federal Reserve Board (currently 25%). Similarly a “Reg. T Call” is issued if the value of your older securities decline to far, resulting in your account falling below the minimum level required by the Federal Reserve Board (currently 25%). Your account will go into an Reg. T call if the initial equity for the purchase of a security is below the minimum required by the Federal Reserve Board. If your account goes into a Reg. T call you can meet it by depositing funds, marginable securities, or liquidating fully paid-for securities. In a call your broker may forcibly liquidate your account without prior notice, regardless of your intent to satisfy the call These are serious calls and need to be covered “immediately.
A Regulation T or Reg T call occurs when your account has insufficient funds for any purchases made and must be satisfied by the settlement date, which is the third business day after an equity trade is made. Newedge USA has the right to sell positions in an account to satisfy a Reg T call if it is not met by the customer no later than fifth business day.
