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Ask the Professor - Portfolio Margining - How Will Dodd-Frank Impact its Utilization

The Journal of the Law of Investment & Risk Management, "The Futures & Derivatives Law Report", Vol. 30, No. 10, November 2010

NYLS Legal Studies Research Paper No. 10/11 #11

7 Pages Posted: 8 Dec 2010  

Ronald H. Filler

New York Law School

Date Written: December 8, 2010

Abstract

This article analyzes the background and current status of portfolio margining, how it has evolved over the past several years, and how the recent Dodd-Frank Act will impact its utilization and effectiveness. Portfolio margining allows a broker-dealer to analyze a client's total overall portfolio from a risk-based analytical model, establishing the proper minimum initial margin requirements for the entire portfolio applying certain parameters. To be a more effective tool, changes to the U.S. Bankrupcty Code were needed. The Dodd-Frank Act made those legislative changes. It's now up to the regulators to make portfolio margining an even more effective and utilized tool.

Keywords: CFTC, Portfolio Margining, NYSE, Margin, Dodd Frank, Regulation T, SEC, Bankruptcy, Financial Institutions, Brokerage Firms

Suggested Citation

Filler, Ronald H., Ask the Professor - Portfolio Margining - How Will Dodd-Frank Impact its Utilization (December 8, 2010). The Journal of the Law of Investment & Risk Management, "The Futures & Derivatives Law Report", Vol. 30, No. 10, November 2010; NYLS Legal Studies Research Paper No. 10/11 #11. Available at SSRN: https://ssrn.com/abstract=1722223

Ronald H. Filler (Contact Author)

New York Law School ( email )

185 West Broadway
New York, NY 10013
United States
212-431-2812 (Phone)

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