New working group will look to solve complications for pension funds in providing cash collateral as variation margin.
Tag: pension funds
ESMA has proposed a further two year delay from central clearing for pension funds, which were set to begin complying from June 2017.
The regulatory bodies have rejected the EC's proposed amendment for pension funds posting initial margin.
The increasing costs of using derivatives may force pension funds to re-evaluate their hedging strategies.
The European Commission has told regulators pension funds should be exempt from collateral rules.
Europe's pension funds, which are exempted from central clearing until August next year, may be forced to make radical changes ahead of its clearing mandate.
ESMA has recommended a delay from the clearing obligation for firms with "limited" derivatives volumes.
Europe's pension funds could be forced to withdraw from the OTC derivatives market if rules on variation margin are not reviewed.
The majority of buy-side firms, including pension funds, are expected to begin clearing of derivatives from the second half of 2017.
Pension schemes are awarding more money than ever before to investment consultants, up £42bn in a year.