Treasury asks about impact of clearing exemption on LDI and Mansion House

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The Treasury has published a call for evidence about pension funds’ exemption from the clearing obligation. Responses can be provided until 11:59pm on 5 January 2024. 
Pension funds are currently exempt from clearing certain derivative contracts. This exemption was extended earlier this year, until 18 June 2025, with the government saying it would conduct a review to determine a long-term approach. 
The call for evidence includes 20 questions, some of them asking how removing the exemption might interact with aspects of the Mansion House reforms, and if an absence of the exemption would change anything if last year’s gilts crisis were to reoccur. 
Should the clearing exemption be extended or removed? 

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