VM Cover

Once you know the amount of variation margin each day, and having called your counterparty (or received a call) assets must be moved to cover the VM. According to the ISDA Margin Survey for 2017, ~86% of VM is covered by cash. In your CSA there will be a section which sets out which assets are eligible to post for VM, include the specific currencies or securities.

Your collateral system may well suggest which are the most appropriate assets to cover VM each day. Once the assets are selected, you must issue settlement instructions to move the them.