Counterparty diversification held back by banks, panellist says

PGGM investment manager says pleas to add NBLPs to the counterparty mix are ignored by banks and platforms

A policeman with a stop sign
No go: compliance constraints slow the development of NBLP and buy-side relationships

Large buy-side market participants are pushing to experiment with clearing products in a bid to diversify their counterparty pools to include non-bank liquidity providers (NBLPs), but this is being slowed and even held back by the traditional gatekeepers of credit relationships and platforms, said Tjerk Methorst, a trader and investment manager at Dutch pension fund PGGM, speaking at FX Invest Europe in Zurich.

Discussing credit and clearing in foreign exchange markets, Methorst told delegates t