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Can portfolio margin be applied to omnibus accounts?

April 26, 2017accounts applied margin omnibus portfolio

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Can portfolio margin be applied to omnibus accounts?

1 Answer

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Yes, provided the omnibus credit is extended in accordance with section 220.7(f) of Regulation T. In this case both the clearing broker-dealer and the carrying broker-dealer that maintains the omnibus account must be approved for portfolio margin. Both broker-dealers would have to submit an application to their DEA and go through the review and approval process. Customers of the omnibus broker-dealer would be subject to the provisions of NYSE Rule 431(g) and NASD Rule 2520(g).