Futures initial margin requirements are

Futures initial margin requirements are
A . determined based on the client’s credit history
B . determined by the members based on the SPAN framework
C . determined based on the length of the settlement period
D . determined by the exchange

View Answer

Answer: D

Explanation:

Futures initial margins are determined by the exchange. SPAN is the name of a framework the CME uses to determine margins. Only Choice ‘d’ is correct.