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LGIM clears swaps ahead of deadline
18 December 2012
LGIM has cleared interest rate swaps for its LDI funds range ahead of regulatory deadline
Legal & General Investment Management (LGIM) has cleared its first interest rate swaps in its pooled LDI range, Matching Plus funds, ahead of clearing becoming compulsory under the new European central clearing regulations next year.
LGIM manages £187bn ($303bn) in exposure for its LDI clients. Launched in 2011, the LGIM Matching Plus range consists of over 40 funds, which use swaps and leveraged gilts to hedge interest rate and inflation risks for pension schemes.
“We know that central clearing is an additional source of stress for pension scheme trustees,” said LGIM’s CEO Simon Thompson.
“We’ve therefore made it a priority to prepare for the new environment as quickly and efficiently as possible. The successful implementation of the operational infrastructure and legal framework to support central clearing means our clients have one less thing to worry about.”