Cross Margining

(redirected from Spread Margin)

Cross Margining

The practice of a brokerage using the excess margin on one client's margin account to cover another margin account that has fallen below the margin requirement. An account that has fallen below the margin requirement is subject to a margin call, but some financial institutions practice cross margining to reduce the risk that a client will be unable to pay a margin call, which would create problems for all parties involved. Cross margining is also called a spread margin.
References in periodicals archive ?
Todays event is a chance to focus on the BCBS 239 objectives as well as how banks can leverage on an integrated view of their business to improve spread margin with this standard.
In operation, the index-lined interest rate can be affected by participation rates; spread margin or asset fees; interest rate caps; the particular method for determining the change in the relevant index over the annuity's period (annual, high water mark, or point-to-point); and the method for calculating interest earned during the annuity's term (e.
To examine and compare the spread margin of banking groups in India
Balance of Premium Negative Solvency Insurance Income Spread Margin Contracts Loss Ratio Nippon 321,322.
In the NFC Championship game Green Bay are 1-7 certainties to destroy fall guys Carolina and the Packers must be included in weekend doubles to defy the spread margin.
Since it began operations in 2008, GLAC has demonstrated continuing premium growth while generating positive operating results as a result of the improved spread margin on its reinsured fixed annuity book of business and fee-based income.
These rating actions are based on PRCUA's significant decrease in its unassigned funds as a result of realized and unrealized losses in its investment portfolio, decline in its regulatory and Best's Capital Adequacy Ratio (BCAR), modest interest spread margin on its fixed annuity business and continued statutory operating losses.
These rating actions are based on COSVI's significant decline in statutory surplus funds resulting from large operating losses in its group accident and health lines of business combined with significant realized investment losses, its volatile operating performance over the past several years and the impact of continuing low interest rates on the spread margin associated with its significant individual and group annuities businesses.
Included in the interest spread margin were 18 basis points of income from prepayments, or $5.
Included in the interest spread margin were 6 basis points of income from prepayments, or $1.
Included in the interest spread margin were 7 basis points of income from prepayments, or $2.
An offsetting rating factor is the persistent negative spread margin.