marginointijärjestelyt
Marginointijärjestelyt, often translated as margining arrangements or collateral arrangements, refer to the processes and agreements by which parties in financial transactions, particularly those involving derivatives or over-the-counter (OTC) trades, secure their positions against potential losses. These arrangements are crucial for mitigating counterparty risk, which is the risk that one party to a contract will default on their obligations.
The core principle of marginointijärjestelyt is the exchange of collateral. This collateral acts as a buffer,
These arrangements are often formalized through bilateral agreements between financial institutions, such as the Global Master