A central counterparty covers its credit exposures to participants for all products through an effective, risk-based and regularly reviewed margin system. Margin levels fit each product, portfolio and market; price data is timely and reliable, with valuation models for when it is not; initial margin meets a single-tailed confidence level of at least 99 percent over the interval to close-out, with conservative time horizons and limits to procyclicality; positions are marked to market and variation margin is collected at least daily, with authority for intraday calls; cross-product offsets are allowed only where risks are significantly and reliably correlated; and the model is back-tested daily, subject to at least monthly sensitivity analysis and regularly validated.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.