mast image

Special Report

Impact investing

Sections

Major players in Dutch pensions industry criticise derivatives proposals

Related images

  • Major players in Dutch pensions industry criticise derivatives proposals

Related Categories

EUROPE - Major players in the Dutch pensions industry have criticised proposals for new technical standards on regulation of over-the-counter (OTC) derivatives, saying they will lead to more expense for pension funds and may not make processes safer anyway.

The Pension Federation - together with pension fund managers APG, MN, PGGM, Shell and Syntrus Achmea Asset Management - was responding to a consultation by the European Securities and Markets Authority (ESMA) on the draft technical standards for the regulation on OTC derivatives.

In a statement, the Dutch pensions industry association said: "The Pension Federation notes that the proposals are expected to lead to increasing costs for pension funds and their administrators.

"Moreover, it is doubtful whether the increase of a 'confidence level' automatically leads to more security."

In addition to these points, the Pension Federation said it opposed publishing information about so-called intra-group trades.

These, it said, should not contain identities of counterparties involved in relevant transactions.

The association also argue that ESMA should ensure that the recycling of 'non-cash collateral' - such as bank guarantees - through the central clearing party (CCP) is prohibited.

"This non-cash collateral should be booked in a separate account under the name of the end user," it said.

ESMA published the consultation paper on the technical standards for OTC derivatives trades in June under the EMIR (European Market Infrastructure Regulation), following the European Parliament and the European Council's approval of the EMIR this spring.

ESMA has said it aims to reduce risks via the use of central clearing and risk mitigation techniques.

Have your say

You must sign in to make a comment

IPE QUEST

Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2548

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 300-400m.
    Closing date: 2019-07-30.

  • QN-2549

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 300-700m.
    Closing date: 2019-07-30.

  • QN-2550

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2551

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2552

    Asset class: Fixed Income, High Yield (Active).
    Asset region: High Yield (US).
    Size: CHF 500-600m.
    Closing date: 2019-07-29.

  • QN-2553

    Asset class: Fixed Income, High Yield (Passive or Passive Enhanced).
    Asset region: High Yield (US).
    Size: CHF 500-1'100m.
    Closing date: 2019-07-29.

  • QN-2554

    Asset class: Global Real Estate (Equity, unlisted Funds).
    Asset region: World (ex-Switzerland).
    Size: CHF 200 mn (potential for further growth).
    Closing date: 2019-08-07.

  • QN-2555

    Asset class: Real Estate.
    Asset region: European.
    Size: EUR 50 - 100 million.
    Closing date: 2019-07-22.

  • QN-2556

    Asset class: FX Hedging.
    Asset region: Global.
    Size: Mandate size of CHF 1.5 bn.
    Closing date: 2019-08-09.

  • QN-2557

    Asset class: All/large Cap Equities.
    Asset region: China A-shares.
    Size: Unit linked platform (0m USD in initial investment).
    Closing date: 2019-08-01.

Begin Your Search Here
<