Margin Deviations

Status: Under Review, Last updated: 14-12-2020

There is also the possibility of margins being re-agreed or altered in the below scenarios: i) In the event of large fluctuations in the market, due to broker default or market uncertainty, margins may be increased to protect the client from large market swings resulting in exposure. ii) If a piece of collateral is pledged which has a stale price, it is common for the margin to be increased incrementally until an updated price is received. If a security is unpriced for an agreed period of time, the security is deemed ineligible. (IBP-164 UNDER ISLA REVIEW)