Pooled funds in clearing limbo
Pension funds will not have to clear in Europe until at least mid-2015, but what about the vehicles some use to scale up their hedging transactions? As things stand, lawyers are giving different answers – and the industry wants regulators to clarify the issue. Cécile Sourbes reports
Almost two years after pension funds were granted an exemption from Europe's clearing rules, the sector still does not know whether that includes the pooled vehicles used by funds to scale up their hedging programmes. The answer is expected to come in the first quarter of 2014 but, when it arrives, it is likely to be a mix of good and bad news.
The good news: many in the industry, lawyers and funds alike, expect the safe harbour to cover some of the different legal forms that pooled funds take
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