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Initial Collateral Calls

Initial Collateral Calls

The counterparties should notify initial daily collateral exposure requirements by 13.30 London time or such other time as agreed in the master lending agreement. Subsequent changes to exposures valuations are generally caused by the transacting of new same day settlement loans or settlement of late returns, which have been excluded from initial calculations. Both counterparties should address any such changes to exposure valuations as soon as is practicably possible. Counterparties should bilaterally agree loan and collateral values taking account of pending loans and returns, settled transactions and collateral values before agreeing any further collateral movement.The legal agreement between parties may provide a timeframe for collateral management and unless otherwise agreed between counterparties, the following timeframes should be adhered to: (IBP-168 AGREED IN 2017)

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