Margin call

Roles that need it

• Collateral Management Analyst
• Treasury Operations Analyst
• Liquidity Risk Analyst
• Credit Risk Analyst
• Middle Office Analyst

Skills it belongs to

• Collateral and margining
• Working to tight deadlines

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.
• 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.
• Collateral managementCollateral management is the set of activities to give, take and monitor assets that secure an exposure: agreeing eligibility and haircuts, valuing positions, calling and paying margin, substituting assets and settling movements. Collateral optimisation chooses the cheapest eligible assets to deliver across obligations.
• 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.
• 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

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

Updated 31 Oct 2026.