US equity options and single stock futures (SSF) exchanges
have begun to make progress in their push for margin method
changes that would lower margins and improve use of
At the forefront of the changes will be portfolio margining;
stock, options and futures markets have been pushing for years
for greater use of the margining methodology, which can lower
Equity and options markets scored a victory of sorts in
recent weeks when portfolio margining for broad-based indices
was approved by regulators.
The proposals from Chicago Board Options Exchange (CBOE) and
New York Stock Exchange (NYSE) also allow for cross-margining,
meaning portfolio margining can be used on equity index futures
and options on futures if they offset positions in index
options and other index-based securities.
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