Collateral margining

If you don’t want to set a credit limit, you can opt for our collateral margining facility. This facility allows you to make agricultural swap transactions by using an Australian dollar cash deposit as security. Margin calls are based on the daily mark-to-market price of the underlying commodity at close of business.

Business benefits

• You can easily establish an ongoing arrangement with us that will allow you to enter into agricultural swaps by posting cash cover as security. Cash cover is calculated based on a short-term peak exposure, keeping your initial cash commitment low
• We pay a competitive, high-yielding interest rate on cash balances held in a cash deposit account
• There is no minimum deposit amount required to establish a collateral margining facility

Things to consider

• If you do not respond immediately to margin calls made by us (either on the initial or variation margins), we have the right to close out your entire swap transactions. Any loss to the Bank will be debited to your cash deposit account
• We may recalculate the initial margin amount. If so, we may make a margin call and you will need to top up the initial margin by paying further cash into your cash deposit account
• We are under no obligation to repay any cash deposited in the cash deposit account while there is money outstanding under any of your swap transactions. If you request the return of surplus cash deposited in the cash deposit account, we may, at our discretion, return some of the surplus amounts to you

Collateral margining is available to any customer who is defined as a wholesale client under the Corporations Act 2001. View the collateral margining brochure.

• Important information about advice
  
  As this advice has been prepared without considering your objectives, financial situation or needs, you should, before acting on the advice, consider its appropriateness to your circumstances. View our Financial Services Guide (PDF 59kb).
  
  View our Product Disclosure Statement (PDS) for Agricultural Swaps (PDF 248kb) issued by the Commonwealth Bank of Australia, and consider it before making any decision about the product.
  
  If you have a complaint, the Bank’s dispute resolution process can be accessed on 1800 805 605.