Since the margin requirement
is similar for all eligible securities irrespective of residual maturity, the prevailing system does not differentiate the market risk across securities," the RBI said in a statement.
The House of Representatives has passed bills exempting end users from margin requirements
, but all of those measures ran aground in the Senate, where legislators seem reluctant to contemplate any measure that would alter Dodd-Frank.
(26) Additionally, prior to the passage of Dodd-Frank, OTC derivatives operated outside the purview of financial regulators and were not subject to the application of margin requirements
that apply to exchange-traded derivatives.
Long Short Credit Debit Market Market Balance Balance Equity $100,000 $0 $0 $50,000 $50,000 To satisfy the margin requirement
with stock, the customer must deposit marginable stock with a loan value of $50,000, i.e., a value of $100,000 ($50,000 maintenance margin call / 50% initial margin).
Figure 1 (on page 4) gives margin requirements
over this sample period.
There is considerable dispute over whether changes in margin requirements
will indeed affect the stock market.
Like the margin requirement
, the capital requirement is subject to regulatory rulemaking.
Furthermore, the 25% cash margin requirement
, which had previously served as a deterrent, was altered to allow a mix of cash and shares to be deposited as margin instead.
KARACHI, December 29, 2011 (Balochistan Times): Securities and Exchange Commission of Pakistans (SECP) has amended Securities (Leveraged Markets and Pledging) Rules, 2011, relaxing cash margin requirement
to provide relief to margin trading system market.
You will very likely have additional margin requirement
compared with what you face now.
Investors also are watching for potential gold margin requirement
hikes from the CME Group, after the Shanghai Gold Exchange raised margins on some of its gold forward contracts twice this month.