Pooled fund clearing questions vex CVA desks

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Dealers are struggling to price trades with pooled funds - often used by pension funds to transact over-the-counter derivatives more cheaply - because they do not know whether they will be subject to the clearing requirements laid out in the European Market Infrastructure Regulation (Emir). As a result, the desks responsible for pricing and managing derivatives counterparty risk - or credit valuation adjustment (CVA) - say they cannot decide what to charge.

"We simply don't know how to treat the

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