Thu, May 25, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

AIMA urges EU policymakers to push ahead with OTC derivatives reforms set by G20

Wednesday, August 18, 2010

Andrew Baker
Opalesque Industry Update - The Alternative Investment Management Association (AIMA) – the global hedge fund industry association – has urged European Union policymakers to push ahead with reforms of over-the-counter (OTC) derivatives, saying that the benefits will outweigh increased costs.

AIMA, which recently submitted a response to the European Commission’s Consultation on Derivatives and Market Infrastructures, said it wished to see EU policymakers implement the objectives on OTC derivatives that were laid down by the G20.

The G20 has stated that all OTC derivative contracts should be reported to trade repositories, while all standardised contracts should be cleared through central counterparties (CCPs) and, where appropriate and practical, traded on an exchange or electronic trading platform.

AIMA welcomed the fact that the European Commission is likely to mandate central clearing of eligible contracts, and is set to propose harmonised requirements for the establishment and operation of CCPs and trade repositories.

In its submission to the EC, AIMA emphasised that hedge fund managers - significant users of OTC derivatives for investment and hedging purposes – would have to bear significant costs associated with administrative and operational changes the reforms would require.

But AIMA CEO Andrew Baker said: “Managers recognise the need for such reforms and will continue to work closely with policymakers to ensure that reforms and new regulations are well thought-out, coordinated and give due consideration to all the parties active in the OTC derivatives market.

“This is one of the central pieces of the reform agenda leading to the reduction of systemic risk. If designed properly, all market participants will benefit. Moreover, the whole economy will benefit if the incidence and the impact of future market and financial instability is reduced. This is an important objective we all share.”

(Press release)


As the only truly representative global hedge fund association, AIMA, the Alternative Investment Management Association, has nearly 1,200 corporate members worldwide, based in over 40 countries. www.aima.org


Bg

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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: Time to invest in robotics? (part 1)[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The London-based, Swiss-born manager of the RoboCap UCITS Fund, talks to Opalesque about investing

  2. Investing - Hedge funds have been selling big winners this year, Hedge funds are betting $1 billion that Snapchat shares are going to drop, Here are the biggest bets made by top hedge funds in the first quarter[more]

    Hedge funds have been selling big winners this year From CNBC.com: Hedge fund managers' most popular stock to start the year has been a familiar name that is falling short in terms of performance, while the least popular companies all have been crushing the market. Procter & Gamble

  3. Investing - Third Point's Loeb surfs on as hedge fund washout continues, George Soros has added to his losing bets against the stock market, Hedge funds, VCs and the CIA are throwing money at ex-Bridgewater data scientists' startup, Hedge funds shed retail amid fears of "apocalypse"[more]

    Third Point's Loeb surfs on as hedge fund washout continues From Reuters/Nasdaq.com: Billionaire investor Daniel Loeb said on Thursday that he is still making money even as the hedge fund industry struggles. Loeb, who oversees the $16 billion hedge fund firm Third Point LLC, sa

  4. Investing - Tudor Jones backs AI hedge funds, Massive hedge fund trades highlight insider buying: GE, Pentair, Tempur Sealy, Apollo Global and more, Hedge funds big wigs are buying consumer and selling tech, here's the stocks[more]

    Tudor Jones backs AI hedge funds From FT.com: Hedge fund magnate Paul Tudor Jones has invested in a brace of artificial-intelligence powered "quantitative" hedge funds, underscoring the increasing acceptance that the industry will need to turn more to technology and away from traditional

  5. Soon hedge fund investors won't bet on a man, they will bet on a machine[more]

    From Forexlive.com: The Wall Street Journal is in the midst of a 17-part series that looks at the rise of quant funds. The AUM and money invested in quant funds still trails traditional asset managers but the gap is closing. What's truly amazing is volume. Quant funds make up 27% of trading vo