Customer Portfolio Margin (CPM)
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Customer Portfolio Margin System ("CPM") was
developed by The Options Clearing Corporation ("The OCC") Customer Portfolio
to support portfolio-based margining of customer accounts. Margins
Based on the TIMS margin methodology, CPM takes an OCC CPM Main
generated master file of profit and loss values and a user
Online Position Editor
generated position file as input. The TIMS methodology is then ASCII Text Upload
applied to generate a margin computation that can be viewed Disclosure Document
via hypertext pages from the account down to the position User Guide
level. CPM Parameters (PDF)
Valid RBH & CPM Basket
On December 12, 2006 the Securities and Exchange Codes (PDF)
Commission (SEC) approved a rule change which expanded
Useful Links
the pilot program in which limited accounts had the ability to
compute margin amounts for a limited group of products using Option Series Search
a risk-based portfolio approach in lieu of the current strategy- Contact Us
based margin requirements ("Reg. T").
As a result of the rule change, portfolio margining is made available to a) any broker or dealer
registered pursuant to Section 15 of the Exchange Act; b) any member of a national futures
exchange to the extent that listed index options hedge the member’s index futures; and c) any
person or entity approved for uncovered options.
If transactions in security futures are to be included in the account, approval for such
transactions is also required.* And, an eligible participant may not establish or maintain positions
in unlisted derivatives unless minimum equity of at least five million dollars, aggregated across
all accounts under identical ownership at the clearing broker, is established and maintained with
the member organization.
Member organizations must notify and receive approval from the member organization’s DEA
prior to establishing a portfolio margin methodology for eligible participants.
Positions eligible for a portfolio margining account include margin equity securities (including
foreign equity securities and options on foreign equity securities provided the foreign equity is
deemed to have a “ready market” under SEC Rule 15c3-1), listed options on an equity security
or index of equity securities, security futures products, unlisted derivatives on an equity security
or index of equity securities, warrants on an equity security or index of equity securities, broad-
based index futures, and options on broad-based index futures.
For more information on the pilot program please view the Customer Portfolio Margin Disclosure
Document.
There are two methods of computing the margin using CPM. Use either the online position entry
screen or upload a position file for processing. The uploaded file must follow the standard
securities industry 80 byte position file format, which can be found in the CPM User Guide.
Use the online position editor (margin is computed from within the editor) or
Click here to upload an ASCII text and compute margin
* Inclusion of futures products in a customer portfolio margin securities account is not yet
approved by the CFTC.
Customer Portfolio Margin (CPM)

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