Margining. ARRANGEMENTS
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.
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. 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. 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:
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.
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:
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:
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
