Regulatory Timeline
Risk based alternatives to Reg T have been in the works for well over a decade. During the 1990's US regulators, exchanges, and exchange members came to recognize that Reg T margin requirements were often excessive relative to the risk of the positions under consideration. At the same time, advances in portfolio risk management technology and quantitative models made risk-based margin systems a practical alternative.
In an effort to become more globally competitive and to stem the flow of capital to off-shore brokers, US regulators finalized approval of Portfolio Margining in 2007.
In an effort to become more globally competitive and to stem the flow of capital to off-shore brokers, US regulators finalized approval of Portfolio Margining in 2007.
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