By this stage in the collateral lifecycle, the following should have occurred. Note that these tasks are common to both receiving a margin call and making a margin call:
In fact, all the above-mentioned tasks are essential in determining the monetary value of an exposure, and which party is exposed and therefore which party should make the margin call.
Under the circumstances where the firm has established that it has an exposure, the mitigation of that exposure is achieved by the procedural steps depicted in Figure 35.1
The firm’s ...