Collateral clawback fears leave US pension funds unable to clear

rejected

With nine months until they are expected to start clearing over-the-counter derivatives, corporate pension funds in the US are being rejected as clearing clients amid fears that collateral posted to their futures commission merchant (FCM) could be clawed back in the event of the fund's bankruptcy. Bankers and fund managers are hoping for a clarifying statement from the US Department of Labor (DOL), but the hold-up is frustrating some pension plans. "Banks have said they will not clear for us