Newsroom

«Return to Main Blog Page
New Margin Article by SER Member Contrasts the Two Types of Margin: CPM and Reg-T
March 27, 2019

MEMBER HIGHLIGHT - Paul Carroll, an SER Director and Principal of Sententia LLC, recently penned an article, titled “Customer Portfolio Margin — Know Before You Go.” The article provides a primer on Reg T and maintenance margin under FINRA Rule 4210 and explains the origins and needs for a risk-based margin calculation — now known as CPM. Asked what prompted him to write the article, Paul said: “I’ve heard over the years from industry margin practitioners, attorneys and experts feeling that the existing papers on CPM did not contain a perspective or contrast between the two versions of margin [Reg-T vs. CPM]. The consensus seemed to be that CPM was overly sophisticated and much riskier. In my opinion, it is neither, and it’s on that point that I focus this article." Paul has contributed a copy of the new article to the SER Library for the benefit of current and future members. Newsroom visitors may also access a copy of the article by following this link.


 


SER Members serve parties engaged in securities disputes. SER is a party-neutral organization. Items published in this Newsroom that express an opinion or a party bias are not reflective of SER's policy positions or its views as an organization. Items published in the Newsroom on this Website may also be published on SER's LinkedIn Page.

Members: To submit a news item to the Newsroom, first log in, then return to "Newsroom" and press the grey button that will appear here.