SECTION 3 Calculation and collection of margins
Counterparties shall calculate variation margin in accordance with Article 10 at least on a daily basis.
Counterparties shall calculate initial margin in accordance with Article 11 no later than the business day following one of these events:
where a new non-centrally cleared OTC derivative contract is executed or added to the netting set;
where an existing non-centrally cleared OTC derivative contract expires or is removed from the netting set;
where an existing non-centrally cleared OTC derivative contract triggers a payment or a delivery other than the posting and collecting of margins;
where the initial margin is calculated in accordance with the standardised approach referred to in Article 11(1) and an existing contract is reclassified in terms of the asset category referred to in paragraph 1 of Annex IV as a result of reduced time to maturity;
where no calculation has been performed in the preceding 10 business days.
For the purpose of determining the calculation date for initial and variation margin, the following shall apply:
where two counterparties are located in the same time-zone, the calculation shall be based on the netting set of the previous business day;
where two counterparties are not located in the same time-zone, the calculation shall be based on the transactions in the netting set which are entered into before 16.00 of the previous business day of the time zone where it is first 16.00.