Template:Reg im capsule: Difference between revisions

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 {{imcsdprov|Margin Amount (IM)}} is the snappy, memorable label for that portion of one’s initial margin burden that is imposed directly by one’s local regulators. This is the compulsory part of initial margin that you ''have'' to pony up, by law, even if neither you nor your counterparty want to. It would be nice had the drafting said this a little less obliquely — you know, they might have called this “''Regulatory IM''”, even, but look: I wish [[The old feijoa tree|feijoas]] grew in England, and that won’t happen either, so there’s no point getting upset about it.
-This must be posted on the {{imcsdprov|Chargor}}’s behalf to a third party {{imcsdprov|Custodian (IM)}} and held, out of harm’s way and subject to a [[security interest]] in favour of the {{imcsdprov|Secured Party}} and an [[account control agreement]] determining who gets to say what happens to it and and when. Sicne it is held out of harm’s way, neither the Chargor nor the Secured Party can use the {{imcsdprov|Posted Credit Support (IM)}}, and it sits immobilised, a permanent dead weight on the capital efficiency of the world’s financial markets. But everyone is ''safer'' that way — unless you are a hardcore [[modernist]], a little [[redundancy]] is no bad thing — so we shouldn’t feel ''too'' bad about it. To be contrasted and not, however easy it may be, ''confused'' with {{imcsdprov|Margin Amount (IA)}}. <br>
+A {{imcsdprov|Chargor}} must post {{imcsdprov|Margin Amount (IM)}} to a third party {{imcsdprov|Custodian (IM)}} who will hold it out of harm’s way and subject to a [[security interest]] in favour of the {{imcsdprov|Secured Party}} and an [[account control agreement]] determining who gets to say what happens to it and and when.
+Since it is held out of harm’s way, neither the {{imcsdprov|Chargor}} nor the {{imcsdprov|Secured Party}} can [[Reuse|use]] it, and it sits immobilised, a permanent dead weight on the capital efficiency of the world’s financial markets. But everyone is ''safer'' that way — unless you are a hardcore [[modernist]], a little [[redundancy]] is no bad thing — so we shouldn’t feel ''too'' bad about it.
+To be contrasted and not, however easy it may be, ''confused'' with {{imcsdprov|Margin Amount (IA)}}. <br>