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What is Incremental MTM Margin?

April 26, 2017incremental margin MTM

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What is Incremental MTM Margin?

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Incremental MTM Margin is the sum of MTM Margin applicable on the new trades received during the day and the increase in MTM Margin during the day in respect of the trades carried over from the previous day. However, MTM Margin representing loss arrived at during the time of netting of trades, Additional Initial Margin collected on trades done at off-market prices and MTM Margin on 2nd leg of Repo trades do not qualify for being treated as Incremental MTM Margin. Incremental MTM Margin is payable by the member by a cut-off time on the next day. The cut-off time presently is 12.30 P.M. for week days and 11.30 A.M. for Saturdays.