Wed, May 25, 2016
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. Paul Tudor’s hedge fund trims fee amidst poor performance, keep investors[more]

    Komfie Manalo, Opalesque Asia: Paul Tudor’s $11.6bn hedge fund firm Tudor Investment Corp. announced on Monday it would slash down fees of one of its biggest fund to 2.25% of assets and 25% of profits amidst backlash arising from poor performa

  2. West Virginia objects to Alpha Natural sale to hedge fund[more]

    From AP/Heraldcourier.com: West Virginia's environmental authority has filed an objection to the proposed $500 million sale of Alpha Natural Resources' assets to a hedge fund, arguing that the deal could leave the state holding hundreds of millions in reclamation liabilities. The Register-Hera

  3. Mitch Petrick leaves Carlyle as his hedge fund unit suffers losses while assets expand[more]

    Komfie Manalo, Opalesque Asia: Mitch Petrick will be leaving Carlyle Group as head of its hedge funds unit overseeing about $34bn as of March 31, after several funds under his management suffered losses while assets expanded, various media reported. Petrick joined Carlyle in 2010 and was a former

  4. Institutions - Kentucky pension leans into hedge funds amid governance turmoil, Korea's NPS names finalists for initial $1 billion hedge fund-of-funds allocation[more]

    Kentucky pension leans into hedge funds amid governance turmoil From AI-CIO.com: The Kentucky Retirement Systems moved to increase its hedge fund allocation as controversy reigned over fund leadership. Following a string of high-profile hedge fund exits, the Kentucky Retirement Systems (

  5. Fund Profile - The hedge fund that couldn't stay open long enough for a big payday[more]

    From Bloomberg.com: Toby Dodson waited six months for his bet against a fragile Portuguese bank to pay off. But before the reckoning, word came down from his hedge fund bosses at Achievement Asset Management in Chicago: get ready to clear out your desk and unwind your trades, we’re shutting down. Th