UK pension funds may have to clear, post-Brexit

Delays to Emir review raise fears that UK schemes may lose exemption

Large UK pension funds may have to start clearing derivatives trades with European counterparties in the event of a no-deal Brexit, lawyers warn.

The funds are currently exempt from clearing thanks to a carve-out from the European Market Infrastructure Regulation. But once Britain leaves the European Union, UK funds will be considered “third-country” entities – unless regulators strike a deal on equivalence.

“From the point of view of a bank entering into a new transaction with a pension