Sun, Aug 2, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Regulatory push for more collateral not so much of an issue in hedge fund world

Thursday, October 11, 2012

amb
Chris Dopp
From Komfie Manalo, Opalesque Asia:

Concerns that the regulatory push for more collateral will affect the viability of investment or trading strategies will be less of an issue in the hedge fund world, as the industry has a long history of pledging sufficient collateral, and the capital requirements are already built into the strategies, claimed Chris Dopp, senior VP at the exchange group Eurex, one of the sponsors of the recent Opalesque Canada Roundtable.

He also said: "It will be more of an issue for traditional money managers, where the largest investors have often not needed to post collateral. That said, the increased capital requirements will have an impact on return expectations, but they will not eliminate the viability of the strategy."

According to IntegriData, "central clearing, a major element of the Dodd-Frank Act, requires OTC trades to be matched in a third-party clearinghouse much like exchange-traded futures contracts. The new regulations press for greater efficiency by means of strict time limits for the collateral process and dispute resolution. Fund managers must reconcile multiple counterparties, make margin calls and optimize their use of collateral. They need to keep tra......................

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. Opalesque Exclusive: Despite bumpy June/July, CTAs hold on[more]

    Bailey McCann, Opalesque New York: To say that things have been rocky in managed futures recently is putting it mildly. In June, the industry saw its worst month on a performance basis in the past four years. Then yesterday,

  2. Investing - Hedge fund billionaires bet on London as revival gathers pace[more]

    From Bloomberg.com: London’s fund industry is bouncing back, and U.S. billionaires Steven A. Cohen and Ken Griffin are grabbing a piece of the action. Griffin’s Citadel and Millennium Management, a hedge fund run by Israel Englander, have bulked up in London, where asset growth is outpacing the U.S.

  3. Other Voices: Same day reporting and the evolving role of fund administrators[more]

    By: Scott Price, Head of Business Development and Client Management for North America, Maitland Ernst & Young’s latest glob

  4. Cowen Group, Inc. to acquire Conifer Securities[more]

    Cowen Group, Inc. and Conifer Securities, LLC had announced the signing of a definitive agreement under which Cowen will acquire Conifer Securities, the prime services division of Conifer Financial Services LLC. The transaction, the terms of which have not yet been disclosed, was approved by the boa

  5. Cargill’s Black River Asset to shut down four hedge funds[more]

    Komfie Manalo, Opalesque Asia: Cargill Inc.’s $7.4 billion Black River Asset Management said it was closing four hedge funds with a combined $ 1 billion in assets and start returning investors money over the next several months, various media said. The hedge funds represent 15% of Black River’

 

banner