Cross Margining

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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 ?
Owing to grow in benchmark rates and increase in earning asset base, net spread earned during the quarter increased by 77.1 percent; with net spread margin also enhancing to the level of 51.8 percent in current period as against to 47.4 percent in the corresponding quarter previous year.
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.g., simple of compounded interest)."
To examine and compare the spread margin of banking groups in India
To increase spread margin, a bank will either have to increase return on funds or decrease cost of funds.
From the above table, we see that the spread margin of foreign banks operating in India is highest whereas the spread margin is lowest for SBI group.
Balance of Premium Negative Solvency Insurance Income Spread Margin Contracts Loss Ratio Nippon 321,322.8 2,872.8 390.0 1,030 (-3.3) (1.6) (1,095) Dai-ichi 229,405.7 1,870.3 240.0 755 (-2.1) (6.6) (865) Sumitomo 213,070.4 1,578.2 200.0 610 (-2.9) (-2.1) (675) Meiji 127,645.0 1,161.1 150.0 690 (-3.5) (5.5) (731) Asahi 86,070.6 683.4 130.0 634 (-4.1) (-3.0) (732) Yasuda 75,139.8 757.0 79.0 703 (-2.9) (-3.0) (808) Mitsui 68,759.1 647.1 81.0 501 (-4.4) (-0.7) (676) Taiyo 15,286.1 553.7 73.0 980 (1.3) (-5.8) (1,050) Daido 39,015.8 532.8 14.0 883 (-0.3) (-11.2) (1,004) Fukoku 36,818.8 369.5 31.0 810 (1.1) (-3.6) (906) Total 1,212,534.2 11,025.9 1,388.0 (-2.8) (0.2)
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.
The firm also said that banks are to present a proposal to reduce spread margins on loans to the new government.
In the future, "if rates don't rise as forecast, investment income and spread margins will continue to diminish," the analysts say.
The company has taken note of declining plastic prices and lower spread margins.
Veerasak stated that spread margins are decreasing because of new supply from the Middle East and Singapore.