Regulatory margin

The regulatory technical standards applying to enforceability of netting arrangements for VM specifically refer to the criteria set out in Art 296 of the Capital Requirements Regulation as satisfying the criteria – Art 296 as you know sets out the (Basel dictated) standard for recognising netting for bank capital relief – i.e. this is exactly what the ISDA opinions and so on are directed at satisfying.

See also

• Article 296 Capital Requirements Regulation