Thu, Jul 27, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Other Voices: Countdown to EU short selling regulation

Friday, May 25, 2012

This article was authored by Tim Jukes, compliance consultant at The IMS Group (now Cordium).

The European Securities and Markets Authority (ESMA) released a consultation draft on short selling and CDS in January 2012; Jukes discusses the short timetable, the proposed restrictions on using CDS as a hedge and the complexity of reporting requirements.

Many interested parties have criticised the compressed timetable which has allowed for only three weeks consultation with the industry on the detailed aspects of the Regulation contained in ESMA's draft regulatory and implementing technical standards and delegated acts. The timescale also resulted in the absence of the normal call for evidence process and the lack of a cost benefit analysis of the measures. Commentators have noted that such short timeframes could well impede ESMA's aim of producing high quality and credible standards.

Amongst the areas where respondents to the consultations highlighted concerns, the proposed restrictions on using Credit Default Swaps as a hedge feature highly. Under the Regulation, a short sale in sovereign debt is permissible where the transaction serves to hedge a long position in the debt instrument of an issuer, the pricing of which has a 'high correlation' with that of the given sovereign debt. The detailed ESMA proposals, however, introduce n......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - Hedge fund CQS favors structured credit, Direct lending funds' fading all-weather appeal, Funds hunt for cracks in most-prized US shopping malls[more]

    Hedge fund CQS favors structured credit From BArrons.com: A hedge fund manager that can invest across the investment landscape says in his latest semi annual report this week that he's finding opportunities in structured credit -- particularly the shorter term, floating rate kind. Exampl

  2. Launches - Bitcoin hedge fund launches ethereum-subscribed ICO investment vehicle, Jersey players institutionalize first regulated crypto-currency hedge fund[more]

    Bitcoin hedge fund launches ethereum-subscribed ICO investment vehicle From Coindesk.com: The operators of a regulated, Jersey-based bitcoin hedge fund have officially closed a new $5 million fund aimed at investing in cryptocurrency tokens and initial coin offerings (ICOs). Backed by fun

  3. SWFs - China Wealth fund backs TPG lender as part of U.S. property push[more]

    From Bloomberg.com: China Investment Corp., the sovereign wealth fund that controls $814 billion in assets, is betting on U.S. real estate by investing in a commercial real estate lender formed by the money management firm TPG. In conjunction with last week's initial public offering of TPG RE Financ

  4. Months to minutes: Enigma launch aims to boost crypto hedge fund creation[more]

    From Coindesk.com: What if starting a hedge fund was as easy as downloading an API? A startup incubated at MIT Media Lab is today revealing a product designed with this ease-of-use in mind. Called Catalyst, the first product offering by blockchain startup Enigma aims to trigger nothing short of an e

  5. Seward & Kissel launches new compliance service[more]

    Bailey McCann, Opalesque New York: The law firm that formed the first hedge fund - Seward & Kissel - has launched a new compliance service for asset managers. Seward & Kissel Regulatory Compliance, or SKRC, offers full-scale regulatory compliance consulting solutions provided by the firm's attor