Examples of Risk Margin in a sentence
A Risk Margin is then applied to reflect the premium that would be required by a third party assuming the business at the valuation date.
The term "Portfolio Risk Margin" means the Permitted Cover required to be provided by Clearing Members to the Clearing House related to the size and risk of a Clearing Member’s Open Contract Positions in relation to CDS Contracts, as determined pursuant to Rule 503(f)(i).
For the purpose of calculating the gross limit of a SEOCH Participant, since positions in the House, Market Maker, Individual Client and Client Offset Claim Accounts are margined on a net basis, the respective resultant Risk Margin and Mark-to-Market Margin of these accounts will be used in calculating the gross limit of the SEOCH Participant.
Interest Rate Risk Margin covers the risk of future price fluctuations in case of unfavourable interest rate movements under normal circumstances and when liquidating a Defaulting Clearing Member’s portfolio of House Cleared Transactions or Non-Ported Cleared Transactions.
The Risk Margin calculation consists of a projection of the SCR related to underwriting risk, risk of counterparty default and market risk.