Variation margin

In certain respects however, there are significant differences between the two instruments. A classic repo trade is carried out under formal legal documentation, which sets out the formal position of each counterparty in the event of default. Sell/buybacks have traditionally not been covered by this type of documentation, although this is no longer the case as standard documentation now exists to cater for them. There is no provision for marking-to-market and variation margining in sell/ buybacks, issues we shall look at shortly. 

Initial margin may be taken Variation margin may be called... 

The market value of the collateral is maintained through the use of variation margin. So, if the market value of the collateral falls, the buyer calls for extra cash or collateral. If the market value of the collateral rises, the seller calls for extra cash or collateral. In order to reduce the administrative burden, margin calls can be limited to changes in the market value of the collateral in excess of an agreed amount or percentage, which is called a margin maintenance limit. 

A variation margin call is made one month later after the price of the stock has fallen to 92.75 7 February... 

Let s illustrate variation margin as it is applied to during the term of a trade. Exhibit 10.18 shows a 60-day repo in the 5% Treasury 2004, a UK gilt, where a margin of 2% is taken. The repo rate is 5V2%. The start of the trade is 5 January 2000. The clean price of the gilt is 95.25. 

However, the repo desk has lent 937,708 against this security, which exceeds its market value. Under a variation margin arrangement it can call margin from the counterparty in the form of general collateral... 

Since adipic acid has been produced in commercial quantities for almost 50 years, it is not surprising that many variations and improvements have been made to the basic cyclohexane process. In general, however, the commercially important processes stiU employ two major reaction stages. The first reaction stage is the production of the intermediates cyclohexanone [108-94-1] and cyclohexanol [108-93-0], usuaHy abbreviated as KA, KA oil, ol-one, or anone-anol. The KA (ketone, alcohol), after separation from unreacted cyclohexane (which is recycled) and reaction by-products, is then converted to adipic acid by oxidation with nitric acid. An important alternative to this use of KA is its use as an intermediate in the manufacture of caprolactam, the monomer for production of nylon-6 [25038-54-4]. The latter use of KA predominates by a substantial margin on a worldwide basis, but not in the United States. 

The route to 3-bromothiophene utilises a variation of the halogen dance technology (17). Preferably, 2,5-dibromothiophene [3141-27-3] is added to a solution of sodamide in thiophene containing the catalyst tris(2-(2-methoxyethoxy)ethyl)amine (l DA-1) (33) at temperatures marginally below reflux. On completion, quenching exothermically Hberates ammonia gas the organic phase is separated, washed, and distilled, and foremnning thiophene is recycled. Material of 97—98% purity is isolated. 

More importantly, such alloys also possess a very low temperature coefficient of electrical resistance (of the order of 220 idQ.IQ.rC, typical), which causes only a marginal change in its resistance value with variation in temperature. They can therefore ensure a near-consistent predefined performance of the motor for which the resistance grid is designed, even after frequent starts and stops. They are also capable of absorbing shocks and vibrations during stringent service conditions and are therefore suitable for heavy-duty drives, such as steel mill applications. 

The same theory would apply as diseiissed above in the case of two generators. Since there is no variation in the power input to PM, the output of generator G will remain the same, except for the marginal variation in the copper losses as noted etirlier ... 

The failure determining stresses are also often loeated in loeal regions of the eomponent and are not easily represented by standard stress analysis methods (Sehatz et al., 1974). Loads in two or more axes generally provide the greatest stresses, and should be resolved into prineipal stresses (Ireson et al., 1996). In statie failure theory, the error ean be represented by a eoeffieient of variation, and has been proposed as C =0.02. This margin of error inereases with dynamie models and for statie finite element analysis, the eoeffieient of variation is eited as Q = 0.05 (Smith, 1995 Ullman, 1992). 

In risk characterization, step four, the human exposure situation is compared to the toxicity data from animal studies, and often a safety -margin approach is utilized. The safety margin is based on a knowledge of uncertainties and individual variation in sensitivity of animals and humans to the effects of chemical compounds. Usually one assumes that humans are more sensitive than experimental animals to the effects of chemicals. For this reason, a safety margin is often used. This margin contains two factors, differences in biotransformation within a species (human), usually 10, and differences in the sensitivity between species (e.g., rat vs. human), usually also 10. The safety factor which takes into consideration interindividual differences within the human population predominately indicates differences in biotransformation, but sensitivity to effects of chemicals is also taken into consideration (e.g., safety faaor of 4 for biotransformation and 2.5 for sensitivity 4 x 2.5 = 10). For example, if the lowest dose that does not cause any toxicity to rodents, rats, or mice, i.e., the no-ob-servable-adverse-effect level (NOAEL) is 100 mg/kg, this dose is divided by the safety factor of 100. The safe dose level for humans would be then 1 mg/kg. Occasionally, a NOAEL is not found, and one has to use the lowest-observable-adverse-effect level (LOAEL) in safety assessment. In this situation, often an additional un-... 

The requirements of the automotive industry are more demanding than some other industries. Automotive products have to be safe, reliable, and maintainable, protect the occupants, and have minimal impact on the environment in their manufacture, use, and disposal. The automotive sector is a very competitive market and as a consequence costs have to be optimized. There is little margin for excessive variation, as variation causes waste and waste costs money and time. Therefore several methods have evolved to reduce variation. Among them are SPC, FMEA, MSA, and many other techniques The automotive industry believes that the more their suppliers adopt such variation reduction techniques the more likely it will be that the resultant product will be brought to the market more quickly and its production process be more efficient. 

The design of the system must take into account possible variation of critical control parameters that could affect performance. The maximum performance of the process should be defined by a reasonable safety margin. In order to comply with cGMP guidelines, established validation protocols, and parameters should allow the process to achieve reproducible purity and yield under stressed conditions. This implies that the industrial SMB system must be stressed to simulate worst-case conditions for process validation. 

Residence time of the mixture in the vessel is a function of the separadon or settling rate of the heavier phase droplets through the lighter phase. Most systems work satisfactorily with a 30 minute to 1 hour residence time, but this can be calculated [26]. After calculation, give a reasonable margin of extra capacity to allow for variations in process feedrate and in the mixture phase composition. 

The ideal air/gas ratio is that which is marginally higher than stoichiometric. It is not possible to run a burner with no excess air for various reasons (e.g. changing ambient temperature, a slight change in calorific value, variation in barometric pressure, wear of control equipment, etc.). All of these and other factors dictate that the burner is operated with sufficient excess air to avoid the production of carbon monoxide in any quantity. 

Variations in the other elements in ordinary steels affect the corrosion rate to a marginal degree, the tendency being for the rate to decrease with increasing content of carbon, manganese and silicon. For example, in the open air a steel containing 0-2<7 of silicon rusts about 10% less rapidly than an otherwise similar steel containing 0-02% of silicon. 

While the pzc of Hg in F solution has not changed by more than 1 mV for over 70 years, marginal variations are visible for Ga, Tl, In, Cd, Bi, Sn, and Sb that are related to electrolyte effects (weak specific adsorption or disturbance of the adsorbed water layer, as for Ga).847 Important variations can be seen, on the other hand, for polycrystalline Ag, Zn, Ni, Fe, and Cu. For all these metals a drop of the pzc to much more negative values has been recorded this is evidently related to an improvement in the preparation of the surface with more effective elimination of surface oxides. All these metals, with the exception of Ag, are naturally sensitive to atmospheric oxygen. Values of pzc for single-crystal faces first appeared in a 1974 compilation,23 in particular for the three main faces of Ag and for Au (110). Values for a number of other metals were reported in 1986.25 However, for sd-metals, an exhaustive, specific compilation of available experimental data was given by Hamelin etal. in 1983.24... 

A series of bathing solutions mimicking the intracellular environment in fatigued muscle have been studied by Godt and Nosek (1989). Variations in ATP, ADP, PCr, and Cr contents had only marginal effects on the tension development compared to decreases in pH and increases in Pj. 

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