Variation margin
WHAT IS THIS? Variation margin is a payment – typically made daily, in cash – to reflect changes in the market value of a trade, or portfolio of trades. In over-the-counter derivatives markets, variation margin is traditionally seen as a buffer against counterparty default; in listed derivatives, it is treated as settlement.
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Indirect clearing: The capital conundrum
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CCP resolution plans start to take shape
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Working Group on Margining Requirements is keeping a low profile
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Counterparties will have to post variation margin on uncleared trades – but questions remain over which firms will have to post and collect initial margin
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Section 716 of the Dodd-Frank Act is based on a misperception of OTC derivatives, says acting OCC head - who also acknowledged criticism of US uncleared margin proposals
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Risk awards 2012