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PGGM backs EMIR but calls for stressed market liquidity assistance 

September 1, 2015

Taha Lokhandwala, IPE

The Dutch pension fund manager PGGM has called for central bank liquidity help should the European Market Infrastructure Regulation (EMIR) not change to favour pension fund assets.

PGGM said it supported the founding principles of EMIR but the implications of posting cash as collateral with over-the-counter (OTC) derivatives were too great to allow it to continue as they are.

It said it wanted the regulations to be changed to allow for the posting of high-quality government bonds instead of cash as its first preference, suggesting it was possible under current wording.

However, in lieu of an agreement on this between the European Commission, regulators and central counterparties (CCP), it suggested assistance in developing wider, and more pension fund-friendly, repurchase agreement (repo) markets.

Read More: Investment & Pensions Europe

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