Margin Requirements: History and Application
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Authors
Nurkan, Umut
Issue Date
1995
Type
Thesis
Language
en_US
Keywords
Alternative Title
Abstract
Without a doubt, my work-Sip experience was able to
fulfill all of the possible expectations I could have. My
internship at the Options Clearing Corporation allowed me to
see what really goes on in the exchange markets, particularly
the options exchange. Only a selected few are able to work
at such a prestigious place, and I was one of the fortunate
ones. The first section of my report deals with the
historical development of margin requirements and why we need
them in an exchange. I will focus on Great Crash Era in 1929
where the first signs of a need for margin requirements were
seen. I will recount some of the events that happened on
these early days of the Great Depression and discuss what
safeguards were installed to prevent a recurrence of these
events.
The second section of my paper discusses how margin
requirements serve as safeguards. How do they protect
brokers from losses that occurred during the Great
Depression? How are they calculated? In this section I also
discuss what options exactly are to give the reader a better
understanding of how the options exchange functions.
The third section of my SIP will show how my internship
with OCC can help my in the future with my academic and
professional work. What have I learned at the OCC? I will
talk about some of the margin calculation projects I did
while working there. I will give an example of how my better
knowledge of financial markets can help me realize my future
business plans. I will also list an important project that
was not directly related to margin calculations, but that
helped make this internship more than just a desk job.
Description
33 p.
Citation
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License
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