Options
- A
Margins from institutions are collected on an upfront basis
-
Margins shall be levied on the custodians
Correct answer
- C
Margins from institutions are collected on execution of the trade
- D
Margins from institutions are not collected
Why this is the answer
Institutional trades in the cash market are subject to margin requirements like other investors. For transactions confirmed by custodians, the margin obligation is levied on the custodians rather than directly on the institutions.
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