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European Pensions Off the Hook on Derivatives Clearing 

February 5, 2015

Nick Reeve, Chief Investment Officer

Pension funds have been granted a two-year exemption to new rules regarding derivatives trading.

The European Commission announced yesterday that newly-established central clearing houses for derivatives required more time to assess the impact of new rules on pension funds.

The European Market Infrastructure Regulation (EMIR) requires the establishment of central clearing houses for the trading of certain types of derivatives.

These counterparties are expected to raise costs for pension funds and other parties substantially under the current iteration of the rules, as investors would need to hold more collateral against the derivatives they trade.

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