Procyclicality occurs when an increase in margins creates further volatility in the market, requiring further increases in margin rates. The CCP margin requirements are meant to include buffers that limit increases in margins during periods of high volatility to avoid procyclicality. This is usually achieved by including a stress component within the Initial Margin methodology to create a lower band on the margin requirement. Alternatively, a percentage buffer is added to the margin rate that the CCP‘s believe should be set based on their statistical analysis.