This session will explain the Variation Margin (VM) requirements in the EU, the US and the key APAC jurisdictions implementing the international WGMR framework:

• Which entities are subject to the requirements?
• Which trades are subject to the requirements?
• What are the VM requirements?
• Cross-border implications and key similarities/differences with rules in other jurisdictions
• Impact on CSA documentation

The ISDA VM Credit Support Annex under forms part of the Schedule of the ISDA Master Agreement. It is designed to document security arrangements involving the use of collateral to secure the risk either or both parties may have under the ISDA Master Agreement to which the ISDA VM Credit Support Annex relates, incompliance with applicable VM regulations. This session will examine critical provisions in the ISDA Credit Support Annex under New York Law and English Law, including:

• Key principles of the credit support arrangements
• The posting party and the receiving party – How can this party change over time?
• Scope of Covered Transactions under CSA
• Credit Support Obligations: The Delivery Amount and Return Amount
• Minimum Transfer Amounts
• Adding an Independent Amount (IA) and using the Independent Amount provisions
• Transfer Timing: When must a party deliver or return collateral?
• The Valuation Agent and Dispute Resolution
• Substitutions/Exchanges
• Holding and use of Posted Collateral
• Distributions and Interest Amounts
• Events of Default
• Rights and Remedies
• Legally Ineligible Credit Support provisions
• Credit Support Offsets
• Terms for non-netting counterparties
• Other Provisions
• ISDA VM Protocol