Section 48.9 - Margin requirements(a)Margin required. A national bank engaging, or offering to engage, in retail forex transactions must collect from each retail forex customer an amount of margin not less than: (1) Two percent of the notional value of the retail forex transaction for major currency pairs and 5 percent of the notional value of the retail forex transaction for all other currency pairs;(2) For short options, 2 percent for major currency pairs and 5 percent for all other currency pairs of the notional value of the retail forex transaction, plus the premium received by the retail forex customer; or(3) For long options, the full premium charged and received by the national bank.(b)(1)Form of margin. Margin collected under paragraph (a) of this section or pledged by a retail forex customer for retail forex transactions must be in the form of cash or the following financial instruments:(i) Obligations of the United States and obligations fully guaranteed as to principal and interest by the United States;(ii) General obligations of any State or of any political subdivision thereof;(iii) General obligations issued or guaranteed by any enterprise, as defined in 12 U.S.C. 4502(10) ;(iv) Certificates of deposit issued by an insured depository institution, as defined in section 3(c)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1813(c)(2) ) ;(vi) Corporate notes or bonds;(vii) General obligations of a sovereign nation;(viii) Interests in money market mutual funds; and(ix) Such other financial instruments as the OCC deems appropriate.(2)Haircuts. A national bank must establish written policies and procedures that include: (i) Haircuts for noncash margin collected under this section; and(ii) Annual evaluation, and, if appropriate, modification, of the haircuts.(c)Separate margin account. Margin collected by the national bank from a retail forex customer for retail forex transactions or pledged by a retail forex customer for retail forex transactions must be placed into a separate account.(d)Margin calls; liquidation of position.(1) For each retail forex customer, at least once per day, a national bank must: (i) Mark the value of the retail forex customer's open retail forex positions to market;(ii) Mark the value of the margin collected under this section from the retail forex customer to market; and(iii) Determine whether, based on the marks in paragraphs (d)(1)(i) and (ii) of this section, the national bank has collected margin from the retail forex customer sufficient to satisfy the requirements of this section.(2) If, pursuant to paragraph (d)(1)(iii) of this section, the national bank determines that it has not collected margin from the retail forex customer sufficient to satisfy the requirements of this section then, within a reasonable period of time, the national bank must either:(i) Collect margin from the retail forex customer sufficient to satisfy the requirements of this section; or(ii) Liquidate the retail forex customer's retail forex transactions.(e)Set-off prohibited. A national bank may not:(1) Apply a retail forex customer's retail forex obligations against any funds or other asset of the retail forex customer other than margin in the separate margin account described in paragraph (c) of this section;(2) Apply a retail forex customer's retail forex obligations to increase the amount owed by the retail forex customer to the national bank under any loan; or(3) Collect the margin required under this section by use of any right of set-off.