CSA (Credit support annex)

Roles that need it

• Collateral Management Analyst
• Legal Counsel
• Treasury Operations Analyst
• Credit Risk Analyst

Skills it belongs to

• Collateral and margining
• Contract drafting and negotiation

Related concepts

• ISDA Master AgreementThe ISDA Master Agreement is the standard contract published by the International Swaps and Derivatives Association under which two parties trade over-the-counter derivatives. It sets common terms, events of default and termination, and close-out netting, with a schedule for negotiated choices; each trade is then documented by a confirmation.
• Variation margin (VM)Variation margin (VM) is collateral exchanged, usually daily, to settle the change in the market value of derivative positions, so that current exposure does not build up. It is paid in cash at central counterparties; for uncleared derivatives it is exchanged under a credit support annex with a minimum transfer amount.
• Initial margin (IM)Initial margin (IM) is collateral collected to cover the potential future loss on a portfolio if a counterparty defaults, over the time needed to close out or replace the positions. Central counterparties collect it from clearing members; for uncleared derivatives, covered firms exchange it two-way and keep it segregated.
• Margin callA margin call is a demand by one party, or by a central counterparty, for additional collateral when exposure rises or collateral value falls below the agreed level. The other party must deliver eligible assets within the agreed time, usually the same or next business day; disputes are reconciled and escalated.
• HaircutA haircut is the percentage deducted from the market value of an asset given as collateral, to protect the collateral taker against a fall in its value and costs of selling it. Haircuts rise with price volatility, maturity, credit risk and lower liquidity; a 5% haircut means 100 of bonds secures 95 of cash.

Sources

• ISDA documentation library, ISDA (external site) accessed 31 Oct 2026
• Commission Delegated Regulation (EU) 2016/2251 (margin for uncleared derivatives), EUR-Lex (external site) accessed 31 Oct 2026

Updated 31 Oct 2026.