Standard Portfolio Analysis of Risk

This Issue in United States

Concept of SPAN (Standard Portfolio Analysis of Risk®) in Futures Trading

In this context of financial law, the following is a definition of SPAN (Standard Portfolio Analysis of Risk®): As developed by the Chicago Mercantile Exchange, the industry standard for calculating performance bond requirements ( margins) on the basis of overall portfolio risk. SPAN calculates risk for all enterprise levels on derivative and non-derivative instruments at numerous exchanges and clearing organizations worldwide.