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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.


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