Rabobank flags pension fund clearing risk

By Costas Mourselas
25 Jun 2018

A report by Rabobank on Monday highlighted concerns over the feasibility of central clearing for pension funds, saying that the institutions faced more liquidity risks as European rules are phased in.

Under the 2012 European Markets Infrastructure Regulation (Emir), certain derivatives have to be centrally cleared. But pension funds have received multiple extensions to comply with the rules since the regulation came into effect.

Pension funds generally put their cash to work, holding government bonds and other assets. This can ...

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