U.S. corporate pension funds are finding that banks arereluctant to accept them as clearing clients for fear ERISA wouldtreat collateral posted on their futures trades as assets of thepension plan if the plan filed for bankruptcy, according toRisk.net. The pension plans are trying to line up clearing forover-the-counter derivatives trades, but the banks fear the marginthe pension funds post on those trades could be clawed back in thecase of bankruptcy.
The article says the Securities Industry and Financial MarketsAssociation has requested guidance from the Department of Labor onthis point.
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