The minimum initial margin requirement is controlled by the

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The Federal Reserve Board sets the minimum initial margin requirement for securities purchased on credit through broker-dealers. This requirement is designed to limit the amount of leverage that investors can use, in order to prevent excessive risk-taking and market instability. The Securities Investor Protection Corporation (SIPC) is responsible for protecting investors in the event of broker-dealer insolvency. The National Association of Securities Dealers (NASD) is now known as the Financial Industry Regulatory Authority (FINRA), which regulates broker-dealer activity in the United States. The Federal Deposit Insurance Corporation (FDIC) insures bank deposits and promotes the safety and soundness of the banking system.

The Minimum Initial Margin Requirement Is Controlled by the