Esma's proposed AIF segregation will destroy liquidity

Tri-party collateral management "impossible" under AIFMD guidelines

esma-hq

As the deadline for the European Securities and Markets Authority (Esma) to finalise asset segregation rules pertaining to third-party delegates of alternative investment funds (AIFs) approaches, industry participants warn the move jeopardises the future of tri-party collateral management.

They say proposed alternative investment fund managers directive (AIFMD) asset segregation guidelines will destroy liquidity in Europe, making tri-party collateral management "impossible".

In a December 2014 c