While it might be practical to have margin calls with a frequency longer than daily for less volatile asset classes and markets, it's important to note that daily margin calls have become the standard in most OTC derivatives markets. Moreover, intraday margin calls are common for more straightforward and standardized products like repos and derivatives cleared through central counterparties (CCPs).

Things to Remember

• Daily margin calls in OTC derivatives markets are crucial for managing the rapidly changing market risk and credit exposures inherent in these instruments.
• The frequency of margin calls can be influenced by the volatility of the market, the creditworthiness of the counterparties, and the specific terms of the derivative contracts.
• Effective margining practices are a key component of risk management in OTC derivatives, helping to mitigate the potential for significant losses due to counterparty defaults.