About collateral margining facilities

Business benefits

If you don’t want to set a credit limit, you can opt for our collateral margining facility.

Margin calls are based on the daily market-to-market price of the underlying commodity at close of business. Benefits include:

  • Cash cover is calculated based on short-term peak exposure, keeping your initial cash commitment low
  • Earn a competitive, high-yielding interest rate on cash balances held in a Cash Deposit Account
  • No minimum deposit amount required

What 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

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Rates and fees

Our latest rates and fees make it easy for you to compare products and make the right financial choices.

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Important information

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 Commodity Risk Management Solutions (PDF 944kb) 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.