Insight Investment: The need for non-cash variation margin

Of all the firms that will be required to clear over-the-counter derivatives, pension funds are the group for which it looks most problematic – hence a three-year exemption in Europe’s clearing legislation. But that grace period started last August, and there are a lot of issues to resolve by the time it expires in 2015. In the meantime, relatively few funds are deciding to start clearing voluntarily – and that’s the right call, says Vanaja Indra, market and regulatory reform director in the