CHAPTER I GENERAL PROVISIONS ON RISK MANAGEMENT PROCEDURES
SECTION 1 Definitions and general requirements
For the purposes of this Regulation, the following definitions apply:
"initial margin" means the collateral collected by a counterparty to cover its current and potential future exposure in the interval between the last collection of margin and the liquidation of positions or hedging of market risk following a default of the other counterparty;
"variation margin" means the collateral collected by a counterparty to reflect the results of the daily marking-to-market or marking-to-model of outstanding contracts referred to in Article 11(2) of Regulation (EU) No 648/2012;
"netting set" means a set of non-centrally cleared over-the-counter ("OTC") derivative contracts between two counterparties that is subject to a legally enforceable bilateral netting agreement.
‘UK UCITS’ means UK UCITS as defined in section 237(3) of the Financial Services and Markets Act 2000.