Extreme volatility creates two major challenges for Treasurers. The first is price volatility itself, which makes it very difficult to predict variation margin requirements and therefore cash outflows. The second is the change in margin rates by clearing houses in response to price volatility, which results in higher initial margin requirements.

With so much capital at stake, it’s critical that firms start actively managing their margin.

We break down the 4 key questions you need to ask to gain total visibility and control over your margin.

Inside we cover:

  • Are you being called for the right amount of margin?
  • What is driving your daily margin changes?
  • How can you optimise the amount you are called for?
  • How much of a cash buffer do you need to maintain?