EC urged to exempt insurers from central clearing

Need for cash collateral could encourage pro-cyclical investing, industry says

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Insurance Europe has asked the European Commission (EC) to exempt insurers from an obligation, contained in the European Market Infrastructure Regulation (Emir), to centrally clear derivatives or, alternatively, enable central counterparties (CCPs) to accept non-cash assets as variation margin.

The trade association stated its arguments publicly on August 17, in response to the commission's consultation paper on Emir, published in May.

The majority of Emir's rules came into force in 2012, but in