Template:M summ 2016 NY VM CSA Eligible Collateral (VM)
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The kinds of collateral that you may exchange under a 2016 NY Law VM CSA. 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.
We also have an impassioned JC essay about why bilateral variation margin is potentially a destabilising effect on financial systems, which was admirably demonstrated during the Archegos fiasco. But no-one listens to the JC.