Collateral Control of the → Counterparty risk for derivative transactions by collateralising the market values, usually by providing cash. The standard is a mutual obligation to provide collateral, i.e. both parties are obliged to provide cash collateral to the counterparty. The structure of the collateralisation can be agreed and documented individually between the counterparties, e.g. with regard to the frequency of recalculation (daily, weekly, etc.). Collateral can also be provided in the form of securities and it is possible that only one of the counterparties is obliged to provide collateral.