About Regulation T calls

Regulation T (Reg T) is a Federal Reserve Board provision that regulates extensions of credit and requires that investors have a minimum initial ownership interest of 50%.

What is a Reg T call?

If you don’t have enough equity in your investing account to cover the minimum 50% requirement, you’ll be issued a Reg T call.

Note

Reg T calls are due within 3 trading days, but Sav reserves the right to cover the call early if necessary. We recommend that you resolve a Reg T call immediately.

If you get a Reg T call, it’s because you haven’t met the initial requirement for the stocks you’ve bought.

Why did you get a Reg T call?

The following are the most common reasons why you might get a Reg T call.

• ACH reversals: If a deposit you made has been reversed, you may get a Reg T call for insufficient funds. You may need to reinitiate your deposit to immediately cover any trades made.

How to resolve a call

You can resolve a Reg T call by following the on-screen notification’s instructions. Some common ways to resolve a call are to:

• Exercise a long option.

• Deposit funds equal to or in excess of your call amount.

• Close some of your positions by selling shares. The proceeds from the sales will help cover your call.

Keep in mind that closing or selling positions to meet Reg T calls for your account can lead to further restrictions.

Disclosures

Margin involves the risk of greater investment losses. Before using margin, customers must determine whether this type of strategy is right for them given their investment objectives and risk tolerance. Review our Margin Disclosure Statement for details.