Current Affairs · OTC Derivatives Margining Directions
The Master Direction on Margining for Non-Centrally Cleared OTC Derivatives, 2024, establishes a framework for mitigating counterparty credit risk. Based on these guidelines, which of the following statements is/are correct? 1. The Initial Margin (IM) covers mark-to-market exposures on a daily basis. 2. The Initial Margin is calculated at the outset of transactions and is mandated to be recalculated within 10 working days in the event of significant exposure changes. 3. The regulatory framework permits entities to calculate Initial Margin using either the Standardised Approach or the Quantitative Portfolio Margin Model. Select the correct option:
- 11 and 2 only
- 21 and 3 only
- 32 only✓
- 41, 2, and 3
Correct answer
2 only
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