Template:Reg ia capsule: Difference between revisions

{{imcsdprov|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 this extra [[non-regulatory initial margin]] to the {{imcsdprov|Custodian (IM)}} as well the [[regulatory initial margin]] and all of it will be held out of harm’s way, though be careful for what you wish for: your [[dealer]] may charge you bigger spreads as a result because it can’t optimise its funding position on [[initial margin]] you haven’t physically given it. <br>