Multiple choice general knowledge

Margin requirements for customers are established by:

  1. the Federal Reserve Board.

  2. the Commodity Futures Trading Commission.

  3. the brokerage firms, subject to exchange minimums.

  4. the Clearing Corporation.

  5. private agreement between buyer and seller.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Margin requirements are set by brokerage firms but must meet or exceed the minimum requirements established by the exchange where the futures contract trades. The Federal Reserve regulates stock margin, not futures. The CFTC regulates futures trading but doesn't set specific margin levels. The Clearing Corporation handles trade clearing and settlement.

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