Bilateral Collateral Substitutions

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Status: Under Review, Last Updated: 23/02/2021

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It is recommended that the counterparties agree collateral substitutions in accordance with their collateral schedule(s) and in as timely a manner as possible, but no later than an hour before the earliest DVP market deadline. This earlier deadline then allows onward deliveries and sufficient tolerance to avoid any mandatory penalty or buy-in.

Collateral delivered as a substitution for collateral being withdrawn must adhere to the agreed eligibility schedule and be of sufficient value. (IBP-170)