(13)In accordance with Prudential Standard CPS 226, variation margin is to be calculated and called on a daily basis and settlement of variation margin amounts is to be conducted ‘promptly’. APRA has publicly stated its expectation that, in practice, settlement of variation margin should occur on a T+1 basis (where T is the date of the margin call). However, such a settlement timeframe might not be feasible in all circumstances due to, for example, time zone and cross-border considerations. Therefore, APRA has adopted a principles-based requirement for the prompt settlement of variation margin to achieve an outcome consistent with other global regulatory requirements for settlement timing for variation margin. Article 12 of Delegated Regulation (EU) 2016/2251 requires all counterparties to an OTC derivative transaction not cleared by a CCP to exchange variation margin on a daily basis or adjust the margin period of risk used to calculate the initial margin accordingly. The arrangements provided for in Prudential Standard CPS 226 with respect to variation margin should be considered equivalent only where those arrangements achieve an outcome equivalent to that achieved by applying the requirements of Regulation (EU) No 648/2012. Therefore, conditions to that effect should be laid down.