Investment association says banks liable for clearing house

first_img Investment association says banks liable for clearing house Show Comments ▼ whatsapp Thursday 16 September 2010 9:03 pm Share whatsapp THE Investment Management Association (IMA) joined critics of the European Commission’s draft proposals on short selling and derivatives yesterday saying banks rather than long-term investors should foot the lion’s share of the bill for a proposed new central clearing house. The IMA said the proposals risked leaving pension and insurance funds potentially paying over the odds for the clearing house despite posing less risk to the financial system than other investments.Jane Lowe, director of markets at the IMA, said: “Investment managers are not asking for exemption from legislation or for a special framework: they want to see issues relevant to their clients addressed. Measures to constrain irresponsible speculation are required, but these should not be implemented in a way that adversely affects stable long-term investors. As things stand, the costs of central clearing are likely to be borne disproportionately by end investors, despite the fact that they present an extremely low risk to the system.“We call upon the European institutions working on this legislation to engage with investors and re-evaluate the key provisions.” KCS-content Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofTortilla Mango Cups: Recipes Worth CookingFamily ProofWhat to Know About ‘Loki’ Ahead of Disney+ Premier on June 9Family ProofCheese Crostini: Delicious Recipes Worth CookingFamily Proof Tags: NULLlast_img read more