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 unt

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: