(a) General. After the date on which a covered swap entity enters into a non-cleared
swap or non-cleared security-based swap with a swap entity or financial
end user, the covered swap entity shall collect variation margin equal
to the variation margin amount from the counterparty to such non-cleared
swap or non-cleared security-based swap when the amount is positive
and post variation margin equal to the variation margin amount to
the counterparty to such non-cleared swap or non-cleared security-based
swap when the amount is negative.
(b) Timing. A covered swap entity shall comply with the variation
margin requirements described in paragraph (a) of this section on
each business day, for a period beginning on or before the business
day following the day of execution and ending on the date the non-cleared
swap or non-cleared security based swap terminates or expires.
(c) Other counterparties. A covered
swap entity is not required to collect or post variation margin with
respect to any non-cleared swap or non-cleared security-based swap
described in section 237.1(d). For any other non-cleared swap or non-cleared
security-based swap between a covered swap entity and a counterparty
that is neither a financial end user nor a swap entity, the covered
swap entity shall collect variation margin at such times and in such
forms and such amounts (if any), that the covered swap entity determines
appropriately addresses the credit risk posed by the counterparty and the
risks of such non-cleared swap or non-cleared security-based swap.
