Source: https://www.ecfr.gov/cgi-bin/text-idx?mc=true&node=se17.1.23_1153&rgn=div8
Timestamp: 2019-12-05 16:08:11
Document Index: 299488921

Matched Legal Cases: ['art 23', '§23', '§23', '§23', '§23', '§23', '§23', '§23', '§23', '§23', '§23', '§23', '§23']

Title 17 → Chapter I → Part 23 → Subpart E → §23.153
§23.153 Collection and posting of variation margin.
(a) Initial obligation. On or before the business day after the day of execution of an uncleared swap between a covered swap entity and a counterparty that is a swap entity or a financial end user, the covered swap entity shall collect the variation margin amount from the counterparty when the amount is positive, or post the variation margin amount with the counterparty when the amount is negative as calculated pursuant to §23.155 and in a form that complies with §23.156.
(b) Continuing obligation. The covered swap entity shall continue to collect the variation margin amount from, or to post the variation margin amount with, the counterparty as calculated each business day pursuant to §23.155 and in a form that complies with §23.156 each business day until such uncleared swap is terminated or expires.
(c) Minimum transfer amount. A covered swap entity is not required to collect or to post variation margin pursuant to §§23.150 through 23.161 with respect to a particular counterparty unless and until the combined amount of initial margin and variation margin that is required pursuant to §§23.150 through 23.161 to be collected or posted and that has not been collected or posted with respect to the counterparty is greater than $500,000.
(d) Netting. (1) To the extent that more than one uncleared swap is executed pursuant to an eligible master netting agreement between a covered swap entity and a counterparty, a covered swap entity may calculate and comply with the applicable variation margin requirements of this section on an aggregate basis with respect to all uncleared swaps governed by such agreement subject to paragraph (d)(2) of this section.
(2)(i) Except as permitted in paragraph (d)(2)(ii) of this section, if an eligible master netting agreement covers uncleared swaps entered into on or after the applicable compliance date set forth in §23.161, all the uncleared swaps covered by that agreement are subject to the requirements of §§23.150 through 23.161 and included in the aggregate netting portfolio for the purposes of calculating and complying with the margin requirements of §§23.150 through 23.161.
(e) Satisfaction of collection and payment requirements. A covered swap entity shall not be deemed to have violated its obligation to collect or to pay variation margin from a counterparty if:
(i) Made the necessary efforts to collect or to post the required variation margin, including the timely initiation and continued pursuit of formal dispute resolution mechanisms, including pursuant to §23.504(b)(4), if applicable, or has otherwise demonstrated upon request to the satisfaction of the Commission that it has made appropriate efforts to collect or to post the required variation margin; or