Margin requirement calculations for complex options portfolio

The need for a consistent regulatory framework


Summary

Equity option margin requirements in the U.S. markets are usually determined by either a Regulation T rule for regular customer accounts, covering most retail customers, or by Customer Portfolio Margin covering more sophisticated option portfolios.

The result is a fragmented, inconsistent options margining framework in the U.S. that needs an overhaul, recommendations for which are provided at the end.

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