Is this the end of OTC derivatives for pension schemes?

Comments

Over-the-counter (OTC) derivatives, such as interest rate and inflation swaps, have become standard tools for defined benefit pension schemes. These instruments allow pension schemes to reduce risk and manage portfolios more efficiently. However, the financial crisis and subsequent changes in regulation means it is likely that the way pension schemes will use such instruments will change. Whilst pension schemes cannot move their interest rate and inflation derivatives to central counterparty clearing today they should understand the impacts changes in regulation are bringing to market practice.