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More difficulties for asset managers and pension funds to access OTC derivatives market

Posted on by aldopuch

Impact of Dodd-Frank on asset management and pension funds in the US

With the new section of Dodd-Frank regulations which came into life on 9th of September, asset managers and pension funds in the US will face more difficulties in accessing the OTC derivatives market as they have to clear the trades through central counterparties.

The point of requiring OTC derivatives trades to be cleared via central clearing counterparties, such as LCH.Clearnet, is that it forces asset managers to stump up more money on margin – which acts as a safeguard for the investors involved.

To read more go the article on FT.com

If you want to learn more about derivatives the next Eureka Financial course on Understanding derivatives focuses on explaining different types of derivatives, their characteristics, pricing strategies and use by various market players.

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Eureka Financial offers over 100 public and in-house training courses in banking and finance, corporate finance and M&A, risk management, operations, investments, wealth management, soft skills and management. For more details visit: www.eurekafinancial.com

 

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