5 May 2017
Brussels
Reporter: Mark Dugdale

Pension funds given three-year exemption to EMIR central clearing


Pension funds have been handed a three-year exemption from central clearing of over-the-counter (OTC) derivatives under the European Market Infrastructure Regulation (EMIR).

The European Commission proposed reforms to EMIR yesterday (4 May) following a multi-year review of the 2012 regulation of OTC derivatives.

Pension funds will be given the three-year reprieve because they “do not have normally access to the necessary cash collateral, and no specific solutions have been developed so far”, according to the European Commission.

The European Commission has extended the exemption for pension funds twice before. They were due to comply with EMIR’s central clearing obligation by August 2018.

“[The three-year exemption] will allow the various counterparties involved, including pension funds, central counterparties and the clearing members that provide clearing services, to develop a solution that enables pension funds to participate in central clearing without negatively impacting the revenues of future pensioners,” the European Commission explained.

The EMIR proposal also introduces more proportionate rules for corporates, re-focuses the scope of the clearing obligation for financial counterparties to include additional relevant market players while exempting the smallest, and streamlines the application of reporting requirements. It is also proposes improvements to ensure the quality of reported data.

Valdis Dombrovskis, vice president responsible for financial stability, financial services and capital markets union at the European Commission, said: "EMIR is at the heart of the EU's financial reforms. Today's proposal ensures that EMIR achieves its objective of reducing systemic risk in the OTC derivatives market, while keeping costs to a minimum for the real economy.”

More news
The latest news from Real Estate Investment Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Warehouse REIT acquires four UK assets
25 September 2017 | London | Reporter: Theo Andrew
The purchase, which is in addition to the £108.85 million 27-asset Tilstone Portfolio, represents a net initial yield of 7.5 percent
AEW strengthens Madrid portfolio
25 September 2017 | Madrid | Reporter: Theo Andrew
AEW has acquired an office in Madrid on behalf of its European Value Investors fund, for €30 million
The top 100 private real estate fund managers accounted for 62 percent of total industry fundraising over the past decade, according to a new Preqin report
BlackRock sells Marina Bay office for SGD 2.12 billion
22 September 2017 | Singapore | Reporter: Theo Andrew
BlackRock has agreed to sell Asia Square Tower 2, in Singapore’s Marina Bay, to CapitaLand Commercial Trust, for SGD 2.12 billion (US $1.6 billion)
JLL names head of capital markets for CEE region
22 Septmeber 2017 | Prague | Reporter: Theo Andrew
JLL has appointed Mike Atwell as head of capital markets the Central Eastern European (CEE) region and the Czech Republic
HFF facilitates sale of residential and office assets
21 September 2017 | Plainsboro, New Jersey | Reporter: Jenna Lomax
Kushner Companies has acquired Quail Ridge Apartments in New Jersey, for $146 million, and Perimeter Park in North Carolina has sold for $105.5 million
Fitch revises ratings of retail REIT duo
21 September 2017 | New York | Reporter: Becky Butcher
Fitch Ratings has revised the ratings and outlook of Washington Prime Group (WPG) and CBL & Associates Properties, two retail REITs