Initial margin (IM)

Roles that need it

• Collateral Management Analyst
• Liquidity Risk Analyst
• Credit Risk Analyst
• Treasury Operations Analyst
• Market Risk Analyst

Skills it belongs to

• Collateral and margining
• Risk measures and sensitivities

Related concepts

• 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.
• CCP (Central counterparty)A central counterparty (CCP) is an entity that interposes itself between the parties to trades in one or more markets, becoming the buyer to every seller and the seller to every buyer. It manages counterparty risk through membership rules, margin, a default fund and a default waterfall, and in the EU is authorised under the European Market Infrastructure Regulation (EMIR).
• CSA (Credit support annex)A credit support annex (CSA) is the part of International Swaps and Derivatives Association (ISDA) documentation that governs collateral for derivatives between two parties: eligible assets, haircuts, thresholds, minimum transfer amounts, valuation and timing of calls. Regulatory CSAs set the terms needed to meet EU margin rules for uncleared derivatives.
• 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.
• Default fundA default fund, or guarantee fund, is a pool of resources that clearing members contribute to a central counterparty to cover losses from a member default beyond the defaulter's own margin and contribution. Under the European Market Infrastructure Regulation (EMIR) it must cover the default of the largest member, or of the second and third largest if larger, in extreme but plausible conditions.

Sources

• Margin requirements for non-centrally cleared derivatives, BCBS-IOSCO, BIS (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.