# 12 CFR § 1221.4: Variation margin

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/ecfr-12-1221.4

## Section

- **Citation:** 12 CFR § 1221.4
- **Heading:** Variation margin
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** September 22, 2026
- **Source:** Publisher's official text
- **Location:** Title 12—Banks and Banking > CHAPTER XII—FEDERAL HOUSING FINANCE AGENCY > SUBCHAPTER B—ENTITY REGULATIONS > PART 1221—MARGIN AND CAPITAL REQUIREMENTS FOR COVERED SWAP ENTITIES

## Text

(a) General. After the date on which a covered swap entity enters into a non-cleared swap or non-cleared security-based swap with a swap entity or financial end user, the covered swap entity shall collect variation margin equal to the variation margin amount from the counterparty to such non-cleared swap or non-cleared security-based swap when the amount is positive and post variation margin equal to the variation margin amount to the counterparty to such non-cleared swap or non-cleared security-based swap when the amount is negative.
(b) Timing. A covered swap entity shall comply with the variation margin requirements described in paragraph (a) of this section on each business day, for a period beginning on or before the business day following the day of execution and ending on the date the non-cleared swap or non-cleared security based swap terminates or expires.
(c) Other counterparties. A covered swap entity is not required to collect or post variation margin with respect to any non-cleared swap or non-cleared security-based swap described in § 1221.1(d). For any other non-cleared swap or non-cleared security-based swap between a covered swap entity and a counterparty that is neither a financial end user nor a swap entity, the covered swap entity shall collect variation margin at such times and in such forms and such amounts (if any), that the covered swap entity determines appropriately addresses the credit risk posed by the counterparty and the risks of such non-cleared swap or non-cleared security-based swap.

## Nearby sections

- [12 CFR § 1221.1 § 1221.1 Authority, purpose, scope, exemptions and compliance dates.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1221.1.md)
- [12 CFR § 1221.2 § 1221.2 Definitions.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1221.2.md)
- [12 CFR § 1221.3 § 1221.3 Initial margin.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1221.3.md)
- [12 CFR § 1221.4 § 1221.4 Variation margin.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1221.4.md)
- [12 CFR § 1221.5 § 1221.5 Netting arrangements, minimum transfer amount, and satisfaction of collecting and posting requirements.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1221.5.md)
- [12 CFR § 1221.6 § 1221.6 Eligible collateral.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1221.6.md)
- [12 CFR § 1221.7 § 1221.7 Segregation of collateral.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1221.7.md)
- [12 CFR § 1221.8 § 1221.8 Initial margin models and standardized amounts.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1221.8.md)
- [12 CFR § 1221.9 § 1221.9 Cross-border application of margin requirements.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1221.9.md)
- [12 CFR § 1221.10 § 1221.10 Documentation of margin matters.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1221.10.md)
- [12 CFR § 1221.11 § 1221.11 Special rules for affiliates.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1221.11.md)
- [12 CFR § 1221.12 § 1221.12 Capital.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1221.12.md)
- [12 CFR § 1225.1 § 1225.1 Purpose.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1225.1.md)
- [12 CFR § 1225.2 § 1225.2 Definitions.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1225.2.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-12-1221.4. Check the current official text before relying on it. Not legal advice.