TIMS Margin

T

thomas3133

Are there any brokers that follow exactly the TIMS margin requirements used by the OCC regarding US index options (such as the SPX) in a portfolio margin account, as shown in the OCC website (https://cpm.theocc.com/tims_online.htm)?

I understand that regarding a PM account the brokers will usually require margin which is higher than the TIMS requirement.
 
Quote from thomas3133:

Are there any brokers that follow exactly the TIMS margin requirements used by the OCC regarding US index options (such as the SPX) in a portfolio margin account, as shown in the OCC website (https://cpm.theocc.com/tims_online.htm)?

I understand that regarding a PM account the brokers will usually require margin which is higher than the TIMS requirement.
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Yes, it can change at any time, but our clients at Penson receive the TIMS calculation for the haircut calculations. For SPX, the portfolio is "shocked" down 8% and up 6%.
 
Quote from rmorse:

Yes, it can change at any time, but our clients at Penson receive the TIMS calculation for the haircut calculations. For SPX, the portfolio is "shocked" down 8% and up 6%.
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Do you mean that Penson follows exactly the TIMS requirements and does not require higher margin?

Are there any brokers except for Penson that use exactly the TIMS requirements? There are rumors about Penson's stability...
 
Quote from thomas3133:

Thanks for the link, but I am searching for brokers that don't follow TIMS pretty closely but exactly follow TIMS. And I saw in a TOS paper PM account that the required margin may be much higher than TIMS.
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All firms that offer CPM have two requirements. Haircut which is calculated by the OCC with the TIMS calculation and risk. So lets say for this thread, that EVERY BD uses TIMS for haircut on marginable securities. Some firms add a risk premium that can change daily based on market conditions. As an example, IB views "small cap" stock as too risky, so requires 100% margin, rather than 15%. Some firms look at concentration of position. With $1MM in your account, if you buy $6.67MM of a single stock, they won't allow that from a risk profile. Many firms don't like preferred stock and closed end funds, too illiquid. You get the idea.
 
Quote from thomas3133:

Do you mean that Penson follows exactly the TIMS requirements and does not require higher margin?

Are there any brokers except for Penson that use exactly the TIMS requirements? There are rumors about Penson's stability...
More...

Most Penson clients with CPM come through an Introducing Broker like my firm. We put up a deposit as security for our clients trading and are first loss after the client. Because of that, Penson tends to allow us to monitor risk unless excessive. As to Penson's stability, I can't give you a guarantee with any firm. However, Penson has been doing a lot of cost cutting. They sold a division and received over $30M. They have a lot of excess capital, and the big one, they don't prop trade. Lehman, Bear Sterns and MF Global all lost money trading, not with their commission business. The customer accounts are also covered by SIPC and excess SIPC.

Let me know if you need more information.

Bob
 
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