Template:Reg ia capsule: Difference between revisions
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{{ | {{imcsdrov|Margin Amount (IA)}} is the portion of one’s [[initial margin]] burden that no-one (except your [[dealer]]) made you pay. As such, you usually transfer {{imcsdprov|Margin Amount (IA)}} directly to the [[swap dealer]], if you are a [[Limey|limey]] (or under the influence of the lime-peddlers), by means of [[title transfer]] and not pledge, and almost certainly your [[dealer]] won’t agree to give ''you'' any {{imcsdrov|Margin Amount (IA)}} for any exposure you feel you have to it. If you are a particularly big or stampy-footed customer, you might persuade your dealer to use the {{imcsdprov|Greater of Margin Flow (IM/IA) Approach}}, in which case you will pay all extra non-regulatory margin to the {{imcsdprov|Custodian (IM)}} as well, though be careful for what you wish for: your dealer may charge you worse spreads as a result because it can’t optimise its funding position if so. <br> | ||
Revision as of 14:49, 20 April 2021
Template:Imcsdrov is the portion of one’s initial margin burden that no-one (except your dealer) made you pay. As such, you usually transfer Margin Amount (IA) directly to the swap dealer, if you are a limey (or under the influence of the lime-peddlers), by means of title transfer and not pledge, and almost certainly your dealer won’t agree to give you any Template:Imcsdrov for any exposure you feel you have to it. If you are a particularly big or stampy-footed customer, you might persuade your dealer to use the Greater of Margin Flow (IM/IA) Approach, in which case you will pay all extra non-regulatory margin to the Custodian (IM) as well, though be careful for what you wish for: your dealer may charge you worse spreads as a result because it can’t optimise its funding position if so.