Document ID: chunk:federal_register_of_legislation:F2024C01109:reg:4:p6
Version: federal_register_of_legislation:F2024C01109
Segment Type: reg
Provision Reference: reg 4 (pt 6/34)
Character Range: 136311–139036

Trading Participant requires to be paid by a Client in respect of a Futures Market Contract entered into or proposed to be entered into on behalf of a Client.
Variation Margin means the difference between the value of a Futures Market Contract or Option Contract as shown in the contract, and the value of that contract at any given time.

Part 7.2 Obligations for Trading Participants

7.2.1 Margin obligations
A Trading Participant, other than a Principal Trader, must comply with the margin obligations in this Part.

7.2.2 Calling Initial Margin
(1) As soon as possible after the execution of the Client's instructions on a Market, a Trading Participant of that Market must Call at least the minimum Initial Margin that is determined from time to time under the Clearing Rules of that Market.
(2) In calculating the amount of Initial Margin, a Trading Participant must not offset the Initial Margin on another Contract due by the Client to the Trading Participant unless that other Contract is for the opposite position on the same Market in the same delivery month and in respect of the same commodity.
(3) Nothing in subrule (1) prevents a Trading Participant from Calling an amount higher than the minimum Initial Margin referred to in subrule (1).
(4) A Trading Participant must not accept anything but cash in satisfaction of Initial Margin from a Client, unless the Trading Participant has agreed to accept and has received Cover by way of Approved Securities.

7.2.3 Calling Variation Margin
(1) Subject to subrule (2), a Trading Participant must Call Variation Margin from a Client when the Client has a net debit Variation Margin position, unless the Client is a Clearing Participant of the Clearing Facility for that Market and the Contracts are registered with the Clearing Facility for that Market in the name of that Clearing Participant.
(2) Where the amount of a Call in subrule (1) would be $1,000 or less, the making of such a Call shall be at the discretion of the Trading Participant.

7.2.4 Liability for Margins
A Trading Participant's Client agreement must provide that:
(a)        liability of the Client for the Initial Margin shall arise upon execution of the instructions given by the Client, irrespective of the time when the Call is made; and
(b)       liability for Variation Margin shall arise at the same time as the Variation Margin comes into existence, irrespective of the time when any Call is made.

7.2.5 Satisfaction of Calls for Margin
(1) A Trading Participant's Client agreement must provide that Calls for Initial Margin and Variation Margin must be satisfied by payment unless the Trading Participant agrees to accept and receives, in lieu of payment, Approved Securities.
(2) A