Chapter 23: Client Margin Requirements

In this section

• Basic Margin Terms
  Explore initial margin, maintenance margin, variation margin, and essential risk management concepts in the Canadian derivatives market.
• Factors Affecting the Amount of Margin Required
  Learn how various factors—such as market volatility, net risk exposure, and regulatory guidelines—influence margin requirements for derivatives. Explore practical examples, discover best practices, and understand how portfolio structure can affect the margin you owe.
• CIRO and Bourse de Montréal Minimum Margin Requirements for Equity and Index Option Strategies
  Comprehensive guide to understanding and applying the minimum margin requirements set by CIRO and the Bourse de Montréal for equity and index option strategies, focusing on risk mitigation, position coverage, practical examples, and best practices.
• Meeting Margin Calls
  Explore the essentials of margin calls in derivative trading, how they arise, methods to address them, and the regulatory guidelines that protect both investors and firms.
• Capital Requirements for Firm and Market Maker Accounts
  Explore how regulatory capital requirements protect broker-dealers and market makers, focusing on CIRO rules, proprietary trading exposures, and best practices for capital adequacy. Learn practical tips, real-world examples, and the latest resources on maintaining a sound capital base.
• Member Firm Clearing Deposit Requirements at the Clearing Corporation
  Understand how Canadian clearing members maintain adequate deposits at the clearinghouse to mitigate systemic default risk, including calculations, funding requirements, and regulatory frameworks.
• Updates in Margin Rules Post-Pandemic Volatility
  Learn how margin requirements have evolved due to post-pandemic market volatility, focusing on regulatory changes, stress testing, and the critical importance of adaptive margin management.
• Stress Testing Client Positions
  Learn how to apply extreme scenarios to client derivatives portfolios, assess margin adequacy, and adjust risk appropriately.
• Handling Complex Structured Option Spreads and Margins
  Explore how multi-leg options strategies can reduce or alter margin requirements, learn practical tips on managing offset risks, and discover key Canadian regulatory considerations.