Additional margin rules will apply to schemes using OTC derivatives from September this year. Paul Cluley looks at how funds will be affected and what they need to do next.
Pension funds have been given extra time to prepare for potentially onerous rules requiring their over-the-counter (OTC) derivative transactions to be centrally cleared.
A group of pension fund managers have warned incoming bank capital rules could shut schemes out of derivatives or force them to sell long-term assets to generate cash.
The European Commission has said that pension schemes should have a further two-year exemption from centrally clearing over-the-counter (OTC) derivatives.
Schemes will find out in seven days whether they will be able to extend their exemption to centrally clearing over the counter (OTC) derivatives.
Trustees could miss hedging opportunities when the next European Market Infrastructure Regulations (EMIR) protocol on derivatives comes into force, a lawyer warns.