Pension schemes breathe a sigh of relief

Ana Herrero-WallacePoliticians want to provide greater transparency in order to prevent systemic risk. Industry practitioners complained that some of their proposals would mean an increase in the costs of using derivatives as they would have to commit large levels of collateral upfront to secure trades and be forced to clear their derivatives through a central counterparty.

Some of us attended MEP Kay Swinburne’s derivatives panel at TradeTech in London a couple of weeks ago. She told the audience that it is now likely that pension funds will qualify for a clearing exemption from this legislative burden. Kay used the exemption to illustrate the need for greater lobbying from the industry in all areas of the MiFID II review and mentioned in particular the work the Confederation for British Industry had done in helping to persuade politicians to provide this exemption.

I have listened to MEP Swinburne on many occasions and there is one prevalent theme in all of her political speeches; her concern that the regulators are incapable of obtaining good corporate data.

The decision-makers in Brussels will have to develop the same depth of understanding of our markets that we have and it’s clear that those industry practitioners that don’t raise their voices don’t really get to vote on how MiFID II will shape our industry.

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