Margining. ARRANGEMENTS
Margining. The Securities lent by the Client to ZERO Securities Pty Ltd, and any Cash Collateral provided by ZERO Securities Pty Ltd to the Client, is subject to margining as calculated for the purposes of the Client’s Account with ZERO Securities Pty Ltd and not discretely for each loan of Securities. Accordingly:
(a) ZERO Securities Pty Ltd may from time to time allocate values to the Securities in respect of all loans outstanding under these Terms from day to day and may change those values at any time, including any number of times throughout any day and including giving a zero or other percentage allocation of a market value;
(b) ZERO Securities Pty Ltd may adjust the corresponding amount of any credit for Cash Collateral provided by ZERO Securities Pty Ltd to the Client and any Fees accrued in respect of that Cash Collateral;
(c) your default in performing any of its obligations to ZERO Securities Pty Ltd under the Terms in this Schedule 2 will constitute a Default under these Terms (without having to be specified in the general terms).
Margining. It is default practice in the Australian Repo market to make margin calls, settled via either the transfer of cash or securities, in preference to repricing transactions to cover exposures between the parties. AFMA recommends that parties be guided by the margining principles as described within the ICMA ERCC Guide to Best Practice in the European Repo Market: Section 3, Best practice in margining repo3, however that principles specific to Australian operations be recognised, as described hereunder: xxxxx://xxx.xxxxxxxxx.xxx/assets/documents/Regulatory/Repo/ERCC-Guide-to-Best-Practice- Final-version-Dec-2018-250119.pdf
Margining. 12.1 No margining is required for bilaterally settled Transactions between the successful Eligible Counterparty and the Authority, as the collateral of such Transactions are subject to Haircuts calibrated to the respective tenors of the Transactions. For operational details on bilateral settlement, please refer to Appendices A and B of the Agreement.
12.2 Daily gross margining shall apply to each Transaction settled via Appointed Triparty Agent(s). The collateral of such Transaction is subject to a smaller Haircut in view of the daily margining. For operational details on settlement via the Appointed Triparty Agent(s), please refer to Appendix C of the Agreement.
12.3 Notwithstanding clause 12.1, the Authority reserves the right to:
(a) require a successful Eligible Counterparty to transfer additional Eligible Collateral to the Authority for any bilaterally settled Transaction if the pre-Haircut mark-to-market value of the Eligible Collateral for such Transaction falls below the value of the USD Principal in the opening leg of that Transaction; or
(b) impose daily gross margining requirements for any bilaterally settled Transaction by issuing a written notice to the successful Eligible Counterparty, should the Authority, in its sole discretion, decide that it is necessary to do so. The successful Eligible Counterparty shall ensure that the post-Haircut value of the Eligible Collateral transferred to the Authority in the opening leg of the Transaction is at least equal to the value of the USD Principal in the opening leg of that Transaction.
Margining. It is default practice in the Australian Repo market to make margin calls, settled via either the transfer of cash or securities, in preference to repricing transactions to cover exposures between the parties. AFMA recommends that parties be guided by the margining principles as described within the ICMA ERCC Guide to Best Practice in the European Repo Market: Section 3, Best practice in margining repo3, however that principles specific to Australian operations be recognised, as described hereunder:
Margining. It is the default practice in the New Zealand Repo market to make margin calls, settled via either the transfer of cash or securities, in preference to repricing transactions to cover exposures between the parties.
Margining. 7.1 Margin refers to the amount of money required to open a Position (Initial Margin), or the maintenance of a Position on an ongoing basis (Maintenance Margin). Margin requirements may be a fixed sum per contract or a percentage of the total value of the contract. Margin requirements may fluctuate while your Position is open.
7.2 You acknowledge that you have continuing Margin obligations to us to ensure that throughout the duration of Transactions you have opened, you have positive Margin Cover in your Account at all times.
7.3 You also agree to maintain the minimum amount of Margin Cover required by us regardless whether any notice has been provided to you to make those payments or you have actual notice of the required amount. You understand that your obligation to maintain at least the required amount of Margin Cover is continuous as this can constantly change automatically.
7.4 It is your responsibility to ensure that you satisfy the relevant Margin requirements at all times.
7.5 A Margin Cover requirement for a Contract or other Transaction issued by EverForex will not be satisfied unless or until your Margin payment is received in cleared funds. Once the payment is received, EverForex will apply the payment to your Account.
7.6 We are not obligated to notify you when you have insufficient funds on your Account to satisfy all Margin requirements. However, We endeavour to notify you via alerts on the trading platform when your margin falls below 100% of your margin requirements.
7.7 EverForex may in its absolute discretion Close Out your positions when your margin falls below 50% of your margin requirements.
7.8 You are also responsible to provide payment of any deficit owing to us after Close Out of a Transaction. If you default in payment of such deficit, We may pay the deficit out of the Account or realise any Financial Products held by us and apply the proceeds against that deficit, you must make prompt discharge of the deficit through providing full payment to us immediately.
7.9 You may access your Account online to view details of Margin amounts that have been paid and are owing by you to EverForex. Margin payments must be paid to the nominated account of EverForex in the form of cleared funds.
7.10 EverForex is not bound by any requirement to inform you of your Account balance or Margin Cover requirements or to make Margin calls. You must be aware of the details of the Account, Margin Cover requirements and Margin calls at all times.
7.11 You...
Margining. The second aspect of the special insolvency treatment relates to Article 8 of the Financial Collateral Directive and in particular the issue of margin. Under traditional insolvency principles, the insolvency court has the power to prevent collateral/margin transfers that occurred shortly prior to insolvency. According to Xxxxxxx Xxxxx, this is generally within three months of insolvency, but the precise time horizon does depend on applicable national bankruptcy laws.124 The reason is that such transfers are regarded as giving preferential treatment 120 European Commission, Proposal for a Directive of the European Parliament and of the Council amending Directive 2014/59/EU on loss-absorbing and recapitalisation capacity of credit institutions and investment firms and amending Directive 98/26/EC, Directive 2002/47/EC, Directive 2012/30/EU, Directive 2011/35/EU, Directive 2005/56/EC, Directive 2004/25/EC and Directive 2007/36/EC (23 November 2016) 1 at 4. 121 Moratorium powers only apply to parties within the scope of the BRRD, it does not apply to every collateral transaction as certain parties are not within the scope of the BRRD. 122 ISDA (n 97). See also, Paech (n 30) 1 at 36-39; European Commission (n 97); Xxxxxx (n 78) 149. 123 Xxxxxxx and Xxxxxxxx (n 96) 1 at 8. See also, European Banking Federation, “Solvent Wind- down of Derivatives and Trading Portfolios” (26 July, 2019) 1 at 4, available at: https:// xxx.xxx.xxx/xx-xxxxxxx/xxxxxxx/XXX-0.xxx. 124 Paech (n 30) 1 at 9. to the relevant collateral taker vis-à-vis the other creditors of the insolvent estate. However, for the reasons discussed above, under section 3.4.2 ‘Special insolvency treatment’, “certain insolvency provisions are disapplied”.125 Speci- fically, the special insolvency treatment extends to collateral/margin being provided shortly before insolvency as enforced in Article 8 of the Financial Collateral Directive. According to the wording of the Financial Collateral Directive under Article 8 (3) (a) and (b), where there is:
(a) an obligation to provide financial collateral or additional financial collateral in order to take account of changes in the value of the financial collateral or in the amount of the relevant financial obligations, or
(b) a right to withdraw financial collateral on providing, by way of substitution or exchange, financial collateral of substantially the same value, Member States shall ensure that the provision of financial collateral, additional financial collateral ...
Margining. The Securities lent by the Client to FP Markets, and any Cash Collateral provided by FP Markets to the Client, is subject to margining as calculated for the purposes of the Client’s Account with FP Markets and not discretely for each loan of Securities. Accordingly:
(a) FP Markets may from time to time allocate values to the Securities in respect of all loans outstanding under these Terms from day to day and may change those values at any time, including any number of times throughout any day and including giving a zero or other percentage allocation of a market value;
(b) FP Markets may adjust the corresponding amount of any credit for Cash Collateral provided by FP Markets to the Client and any Fees accrued in respect of that Cash Collateral;
(c) your default in performing any of its obligations to FP Markets under the Terms in this Schedule 2 will constitute a Default under these Terms (without having to be specified in the general terms).
Margining
