DOL paves way for US pension funds to clear swaps

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A major obstacle preventing US corporate pension funds from clearing their over-the-counter derivatives positions was removed today, after the US Department of Labour (DOL) issued an advisory opinion that allays fears any collateral posted to futures commission merchants (FCMs) could be clawed back if a pension fund goes bust.

Uncertainty over whether FCMs might find themselves out of pocket following a bankruptcy has meant some dealers have been rejecting pension funds as clearing clients. This

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