The European Parliament and the UK’s Financial Conduct Authority (FCA) are pressing the European Commission to consider a permanent exemption from requirements to post cash variation margin to central counterparties (CCPs).
Funds have protested loudly about the strain of moving to central clearing, yet some in the industry say an exemption could make matters worse – leaving pension funds still posting cash under bilateral arrangements, but with none of the benefits of clearing through a CCP.
The week on Risk.net, October 6-12, 2017Receive this by email
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