Cross-margining: Difference between revisions

{{a|pb|}}The  process, common in prime brokerage, of calculating required initial margin by reference to net [[exposure]] across ''all'' products, rather than in silos where outstanding transactions under each [[master agreement]] are margined separately.

Cross-margining is often seen under a [[prime brokerage agreement]], which acts as a [[security deed]] over all clients assets that the [[prime broker]] holds in custody, and also often functions as a [[master netting agreement]] sitting across and cross-netting exposures under distinct [[master agreement]]s that may exist between the parties alongside the PBA (for example, an {{isda}} or a [[futures]] clearing agreement).

 

 

{{c|Equity Derivatives}}