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UK pension fund clearing exemption gets long-term renewal

This is an important development for UK pension funds. The exemption to clear derivatives will be maintained as the requirement to post cash for cleared derivatives leads to more liquidity pressure says Nicholas Leib

For that reason, some asset managers favour bilateral over cleared to not tie up cash in margin. Being able to do those bilateral trades on a regulated venue also mitigates operational risk and ensures compliance with the FCA venue perimeter paper.

There’s only one place you can do that OTCX

https://hubs.li/Q032gMBR0

January 17, 2025

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