Sebastian Holding faced $511m in
margin calls but the group claimed that Deutsche Bank put through these trades, unauthorised, and should not have been booked.
Instead, the European debt situation steadily worsened and bond prices continued to decrease, leading to
margin calls from the lenders in the RTM trades.
one of the major problems of selling options is the position can deteriorate very rapidly and
margin calls can come thick and fast.
Analysts noted that if Taiwanese stocks drop further, the pressure for
margin calls will step up, especially for the four industries of solar energy, LED (light-emitting diode), DRAM (dynamic random access memory), and FPD (flat panel display).
To speed up the workflow, the team developed the Receipts and Payments Interactive Database (Rapid), a Microsoft .NET application that automates portions of the workflow, generates
margin calls and valuation statements, and sends forecasts to TFS's funding desk.
Over 12 mid- cap stocks sink due to
margin call pressure
As part of DM Edge, the company's derivatives margin management service, the improvements will provide clients with a fully automated system that facilitates the entire
margin call and collateralisation process, improves reporting capabilities and reduces operational risk.
Brokers had previously been required to make
margin calls at 60 percent.
One of the strategy's negatives is its high cost, although the triple leverage, absence of
margin calls and time premium, and the long-term nature of the strategy make up for this.
But for co-op elevators--the "middlemen" and conduit of America's huge grain market--the historic price rise meant they were exposed to a vast increase in risk levels as they scrambled to meet repeated
margin calls for grain forward-contracted on the Chicago Board of Trade.
Sumner Redstone and Lionsgate's Michael Burns, meanwhile, were hit by
margin calls, losing a portion of their personal stakes in recent weeks.
MUMBAI: Indian shares fell as much as 12.9 per cent yesterday before ending down 4.97pc, a seventh successive loss, as panicked investors sold amid
margin calls on declining share portfolios and fears of a global downturn.
