•What is the ActiveMargin™ validation process? |
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ActiveMargin™ first validates incoming deal requests against a set of business rules defined by the risk manager. If this validation is passed, ActiveMargin™ checks for availability of limits/collateral/securities. If this check is also passed, the deal request is accepted, else, it is rejected. In all cases, ActiveMargin™ displays a detailed trace of how the go no-go decision was made. Click here to view chart 
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| •What type of business rules can be defined in ActiveMargin™? |
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An example of a business rule could be that the duration of the bond position of a particular trader cannot exceed a preset value. Or that, a given division as a whole cannot have naked write positions in options of a particular underlying. Or that the entire treasury cannot trade in futures contracts of a certain underlying security.
The business rules can be very flexible and can be customized to user requirement.
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| •When ActiveMargin™ validates an order, can I view the reasons why ActiveMargin™ accepted or rejected the order? |
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ActiveMargin™ logs the decision trace during order validation, which explains how ActiveMargin™ took the decision to either accept or reject the order.
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