Margin requirements for non-centrally cleared derivatives
By Bank for International Settlements (BIS)
This landmark framework mandates that all financial firms and systemically important non-financial entities exchange initial margin (IM) and variation margin (VM) for derivatives not cleared through central counterparties (CCPs). The primary goal is twofold: to reduce the risk of systemic contagion during counterparty defaults and to incentivize firms to move toward central clearing.
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