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[Cites 0, Cited by 0] [Section 2(1)] [Section 2] [Entire Act]

Union of India - Subsection

Section 2(1)(i) in THE BILATERAL NETTING OF QUALIFIED FINANCIAL CONTRACTS ACT, 2020

(i)“margin” means the amount, form and type of collateral required as a performance bond for the purchase, sale or carrying of a qualified financial contract and includes—
(A)initial margin which protects the transacting parties from potential future exposure likely to arise from future changes in the mark-to-market value of the qualified financial contract during the close-out and replace the position in the event of counterparty default; and
(B)variation margin which protects the transacting parties from the current exposure that has already been incurred by one of the parties from changes in the mark-to-market value of the qualified financial contract after the transaction has been executed;