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| [[Eligible Collateral (VM) - NY VM CSA Provision|The]] kinds of collateral that you may exchange under a {{nyvmcsa}}. It looks like you can choose what you like, right, but CFTC rules in practice restrict it to cash in certain currencies. This is broadly analogous to what happens in Europe under [[EMIR]] and the other major regulatory regimes imposing margin requirements. You may wonder why regulatory VM is cash and regulatory IM is not, and premium subscribers can find out.
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| We also have an impassioned [[JC]] [[When variation margin attacks|essay]] about why ''bilateral'' variation margin may have a ''destabilising'' effect on the broader financial system, potentially weakening swap dealers’ liquidity and risk positions — a risk which was admirably demonstrated during the [[Archegos]] fiasco.
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| But no-one listens to the [[JC]], so you should treat this as extended universe fan fiction only.
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