© Thananit CACEIS’s Olivier Zemb, head of Equity Finance and Collateral Management, Joanna Ksenzova, senior Market Services sales, and Rémy Ferraretto, head of Securities Finance & Repo Sales, explore why a proactive, integrated approach to financing and liquidity, delivered through the custodian, is critical for resilience and performance.
For European pension fund managers, liquidity is no longer a mere operational consideration — it is a strategic requirement.
The combination of structural pension reforms, accelerated settlement cycles like T+1, and volatile markets has created a complex landscape. Funds are grappling with heightened liquidity risk, increased collateral demands, and unprecedented operational complexity.
In this environment, relying on fragmented, ad-hoc solutions exposes funds to unnecessary cost, risk, and administrative burden. The three-fold challenge: Liquidity, collateral, and operations.
Following active industry discussion on the current trends for pension funds across Europe, Zemb suggests that these are driven by three interconnected factors: increased liquidity risk, higher collateral requirements, and growing operational complexity. While the Dutch Future Pensions Act (Wtp) is a potent example, similar pressures from regulatory shifts, liability-driven investing, and the need for greater efficiency are felt UK-wide and across the continent. …
