What needs to be reported under EMIR/UK EMIR for Collateral?
Any collateral transferred, between two counterparties to a transaction, is to be reported in EMIR Trade Reports.
Collateral can be reported on a per position basis or on a portfolio basis.
For the purpose of EMIR Trade Reports, collateral is broken down into the following 3 types:
|Collateral Reporting under EMIR/UK EMIR|
|Initial Margin||Protects counterparties against potential losses which could stem from movements in the market value of the derivatives position|
|Variation Margin||Protects counterparties against exposures related to the current market value of their OTC derivative contracts|
|Excess Collateral||Should capture only additional collateral that is posted or received separately and independently from the initial and variation margin|