Pension schemes need to get ready to clear OTC derivatives transactions.

The largest schemes will become subject to the clearing obligation later this year, with all other pension schemes following early next year. The contractual terms for cleared derivatives will be fundamentally different from the terms which govern current transactions. Pension schemes need to understand the new terms so that they can manage the risk in their derivatives book accordingly. In this session, we will explain the differences and highlight where the new risks are.

Pension schemes are also subject to a temporary exemption from clearing. This exemption is important because banks can also use it to reduce the capital costs of non-cleared transactions. Over the coming months, trade counterparties will want to know whether schemes want to rely on this temporary exemption. In this session, we will consider the scope of the exemption and offer a practical approach to applying exemption.

By attending this event you can claim 1 hour CPD under the PMI CPD scheme.