Cboe Global Markets

Margin Engine for STANS® Methodology

Anticipate OCC clearing margin requirements based on real-time market conditions.

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Real-Time Margin Engine for STANS® Methodology

With regulatory complexity increasing, today’s market environment dictates an increased focus on margin to ensure that your firm is putting capital to use in the most efficient way. Cboe Hanweck enables you to manage your margin position – intraday.

By leveraging Cboe Hanweck's Margin Engine for STANS methodology proprietary to OCC®, OCC clearing members can simulate margin requirements based on real-time market conditions and up-to-the-second position and collateral information.

  • Flexible integration options through a RESTful service.
  • With Cboe Hanweck’s Margin Engine for STANS methodology, clearing members can gain deeper insight into their portfolios:
    • Margin attribution: estimate the impact of specific customer portfolios within an entire clearing member account.
    • Margin scenario analysis: estimate the sensitivity of STANS margin requirements to changes in market conditions.
    • Margin what-if analysis: estimate the impact of adding and removing positions in the portfolio.
    • Stock Loan clearing: measure the impact of directing stock loan trades to be cleared by the OCC and determine the most suitable destination.

Collateral Optimization

Due to increased balance sheet costs, the ability to efficiently meet CCP margin requirements is critical and with Cboe Hanweck's Margin Engine for STANS methodology, clearing members can gain unprecedented insight into their OCC portfolios.

  • Cboe Hanweck’s Margin Engine for STANS methodology can optimize total requirements based on up-to-date positions and available collateral inventory.
  • Using a stated cost of capital for each collateral item, the Engine can compute an optimal flexible integration to be incorporated into broader firm-wide collateral initiatives.

TIMS®, STANS®, and OCC® are registered trademarks of The Options Clearing Corporation ® (OCC). OCC assumes no liability in connection with the use of STANS or TIMS by any person or entity. The current version of TIMS or STANS may not be reflected in the Cboe Hanweck services described herein.

The information in this webpage is provided for general education and information purposes only. No statement(s) within this webpage should be construed as a recommendation to buy or sell a security or futures contract, as applicable or to provide investment advice. Supporting documentation for any claims, comparisons, statistics or other technical data in this webpage is available by contacting Cboe Global Markets at www.cboe.com/Contact.

Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of “Characteristics and Risks of Standardized Options.” Copies are available from your broker or from The Options Clearing Corporation at 125 South Franklin Street, Suite 1200, Chicago, IL 60606 or at www.theocc.com.

Brokerage firms may require customers to post higher margins than the minimum margins specified in this webpage.