In 2007, as the industry expanded leveraging capabilities with the introduction of portfolio margining services, Penson was at the forefront. We were one of the first firms approved by US regulators to offer these services to our correspondents and their clients.
The Penson Portfolio Margin Model employs, among other techniques, a Theoretical Inter-Market Margining system (TIMs) methodology that supplies the base margin computation for each eligible security. Equities and indices, with related options, are evaluated as a portfolio. In theory, a hedged portfolio with offsetting risks has the opportunity to qualify for lower overall margin requirements under this model.