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Zorluk: Çok zorMargin Accounts and Borrowing Requirements

Match each regulatory borrowing rule or margin account constraint on the left with its correct operational threshold or requirement on the right.

  • Broker-Dealer Securities Rehypothecation LimitMaximum of 140% of the customer's net debit balance may be repledged to banks as collateral for margin loans.
  • Regulation T Payment Settlement Timeframe WindowMust be satisfied within two business days following regular-way settlement (T+4T+4 business days total).
  • Pattern Day Trader Margin Account Minimum Equity RequirementMust maintain a minimum equity balance of $25,000 on any day that day trading activity occurs.
  • Short Equity Maintenance Margin Base RequirementEquity equal to at least 30% of the current market value of the borrowed securities must be maintained.

Cevap

Broker-Dealer Securities Rehypothecation Limit pairs with the 140% debit balance repledging cap; Regulation T Payment Settlement Timeframe Window pairs with payment due within two business days post regular-way settlement (T+4T+4); Pattern Day Trader Margin Account Minimum Equity Requirement pairs with the $25,000 equity threshold; Short Equity Maintenance Margin Base Requirement pairs with the 30% maintenance requirement.
The pairings correctly connect each margin account statutory or regulatory threshold with its corresponding operational requirement under Federal Reserve Regulation T, SEC Rule 15c3-3, and FINRA Rule 4210.

Adım Adım Çözüm

1
Identify the hypothecation and rehypothecation rules under SEC and FINRA borrowing standards.
Broker-dealers can repledge customer securities up to 140% of the customer's net debit balance to secure bank margin loans.
This limits broker-dealer leverage while allowing financing for client debit balances.
2
Determine the settlement and payment deadlines prescribed by Federal Reserve Regulation T.
Payment is required within T+4T+4 business days (regular-way settlement T+2T+2 plus 2 extension days).
Regulation T enforces credit restrictions and settlement windows across broker-dealers.
3
Examine the specialized equity requirements for pattern day trading accounts.
Pattern day traders are subject to a mandatory $25,000 minimum account equity threshold.
High-frequency intra-day trading poses elevated financial risks requiring higher risk buffers.
4
Contrast long and short equity maintenance requirements under FINRA Rule 4210.
Long positions require a 25% maintenance level, whereas short positions require a 30% maintenance level.
Short positions carry unlimited potential loss risk, justifying a higher ongoing equity cushion.

Anahtar Kavram

Margin account regulations, borrowing thresholds, and maintenance requirements under Federal Reserve and FINRA rules
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Margin Accounts and Borrowing Requirements