Common use of Margining Clause in Contracts

Margining. It is default practice in the Australian Repo market to make margin calls, settled via either the transfer of cash or securities, in preference to repricing transactions to cover exposures between the parties. AFMA recommends that parties be guided by the margining principles as described within the ICMA ERCC Guide to Best Practice in the European Repo Market: Section 3, Best practice in margining repo2, however that principles specific to Australian operations be recognised, as described hereunder:

Margining. It is default practice in the Australian Repo market to make margin calls, settled via either the transfer of cash or securities, in preference to repricing transactions to cover exposures between the parties. AFMA recommends that parties be guided by the margining principles as described within the ICMA ERCC Guide to Best Practice in the European Repo Market: Section 3, Best practice in margining repo2repo3, however that principles specific to Australian operations be recognised, as described hereunder: