Recital 7

(7)In its latest assessment of the state of readiness of pension scheme arrangements to centrally clear their derivatives portfolios ⁵ , the Commission came to a conclusion that is similar to ESMA’s. According to the Commission’s analysis, liquidity conditions for pension scheme arrangements remained robust, even during recent periods of market stress, and is expected to continue to evolve favourably as the funds take up alternative access models to the repo market. A positive outlook for liquidity access has led to a situation where a growing number of pension scheme arrangements started to clear voluntarily at least a part of their derivative portfolios. The alternative models to access liquidity through the repo market must be given time to mature, however, while pension scheme arrangements must improve their internal liquidity and collateral management practices.