Independent Amount in Margining?

Independent Amount (IA): Initial margin or “Independent Amount” refers to the amount that the counterparties may need to transfer at the commencement of their relationship. ... Threshold amount (TH): It is the level of unsecured exposure each counterparty will allow the other before any margin call is made.

What is independent amount in derivatives?

Independent Amount is the same concept as initial margin except that the term in- dependent amount only applies to uncleared OTC swaps that are collateralized and initial margin applies to derivatives of all types that are cleared. Variation Margin is the mark to market amount of a position from period t to period.

What is independent amount in collateral management?

Independent Amounts: The independent amount is an additional credit support amount that is required over and above the market value of the trade portfolio. The main purpose of the independent amount is to cater for changes in the market value of the trades between collateral calls.