Margin regulation raises two policy concerns. First, an alignment of margins to volatility can amplify procyclicality … following volatility spikes but does not immediately lower margins following volatility declines, implying that margin …-induced procyclicality is more of a concern in recessions than in expansions. In addition, we find some evidence that the margin difference …

. Such requirements increase with both market volatility and default; consequently, CCP liquidity needs are inherently … procyclical. This procyclicality makes it more challenging to assess CCP resilience in the rare event that one or more large …

complementary. Regarding the introduction of new derivative products for credit risk transfer, the recent announcement by the RBI …