18.8.3 Margin Securities

Trading Members shall accept the deposit of margin securities from their customers in respect of their opening written transactions on the following terms:—

(1) The Writer of an Option shall submit a request to the CDP through the Trading Member on the prescribed form for a transfer of the margin securities from the Writer's Securities Account to a Securities Account designated by the Trading Member.
(2) The margin securities shall be released and returned to the customer's Securities Account upon request made by the customer to the Trading Member who shall confirm and endorse such requests to the OCC on grounds that the customer has adequate margins deposited for his outstanding short positions or has deposited additional margins in lieu of the margin securities to be released.
(3) The customer shall be entitled to all distributions accruing on margin securities subject to Rule 18.8.3(4).
(4) A Trading Member shall be entitled to sell or utilise any or all of the margin securities together with any distributions accruing in respect thereof to satisfy any amounts due and owing to the Trading Member by the customer in respect of his Options trading account.
(5) Trading Members shall be authorised and entitled to transfer the margin securities transferred to its Securities Account in accordance with Rule 18.8.3(1) to the OCC subject to the Regulations.