Fully collateralized position

Fully collateralized position means a contract cleared by a derivatives clearing organization that requires the derivatives clearing organization to hold, at all times, funds in the form of the required payment sufficient to cover the maximum possible loss that a party or counterparty could incur upon liquidation or expiration of the contract.

Source

17 CFR § 39.2


Scoping language

For the purposes of this part
Is this correct? or