Current Affairs · Financial Regulations & Derivatives
The Master Direction on Margining for Non-Centrally Cleared OTC Derivatives, 2024, establishes a stringent regulatory framework to manage counterparty risk, incorporating specific procedural timelines and entity-specific waivers. Which one of the following combinations correctly identifies the mandated timeframe for recalculating the Initial Margin (IM) following significant exposure changes, and the specific counterparties or contract types explicitly exempted from these margin requirements?
- 112 working days; State Governments and cash-settled foreign exchange swaps
- 210 working days; specified Multilateral Development Banks (MDBs) and physically-settled forward contracts in government securities✓
- 37 working days; Bank for International Settlements and forward contracts in corporate bonds
- 45 working days; physically-settled foreign exchange options and entities within the same consolidated group
Correct answer
10 working days; specified Multilateral Development Banks (MDBs) and physically-settled forward contracts in government securities
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