MTA = Minimum Transfer Amount

The Minimum Transfer Amount (MTA) is the smallest collateral amount that must be transferred between counterparties in a derivatives or collateralized agreement. It is a key term in Credit Support Annexes (CSA), which govern collateral exchanges in financial contracts.

Key Points about MTA:

- Reduces operational burden by avoiding frequent small collateral movements.
- Helps in managing liquidity by setting a threshold before requiring a transfer.
- Typically applies in over-the-counter (OTC) derivatives and repo agreements.
- If exposure remains below the MTA, no collateral transfer occurs.
- A high MTA benefits the collateral provider (fewer transfers) but increases counterparty risk.