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In reviewing a member firms application to offer portfolio margining to customers, does FINRA require minimum equity to be maintained in individual accounts?

April 26, 2017application customers FINRA firm margining Offer portfolio require reviewing

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In reviewing a member firms application to offer portfolio margining to customers, does FINRA require minimum equity to be maintained in individual accounts?

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Due to the additional leverage afforded to customers by portfolio margining, firms must establish minimum equity requirements. These requirements vary based upon the strength of the firm’s risk management systems and procedures, and its ability to capture intra-day trading and market activity.