Wed, Feb 10, 2016
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. Credit Suisse cherry picks hedge fund ideas[more]

    From FT.com: Credit Suisse Asset Management plans to cherry pick profitable concepts from hedge funds with the launch in Europe of a “best ideas” strategy. The investment arm of the Swiss bank said the strategy will separate it from other funds blighted by “overcrowding problems”. It comes at a time

  2. Investing - Hedge funds bet on risks in U.S. blue-chip debt, Hedge funds bets against bank credit risk paying off, Tiger Global still likes Internet names, gets pointers from Jeter[more]

    Hedge funds bet on risks in U.S. blue-chip debt From WSJ.com: Hedge funds are betting the next bond sector to crack will be the $4.5 trillion market for the safest U.S. corporate debt. New York’s Perry Capital has placed a $1 billion wager against investment-grade bonds issued by 10 comp

  3. Short Selling - Hedge fund manager Kyle Bass is shorting real estate—again, Top US hedge fund has €80m short position in Paddy Power Betfair[more]

    Hedge fund manager Kyle Bass is shorting real estate—again From Fortune.com: He also predicted the mortgage crisis in 2008. Hedge fund manager Kyle Bass, who runs Dallas-based Hayman Capital, tanked the stock of a little-known real estate financier Friday by revealing that he is shorting

  4. Investing - Real estate secondaries sole 'bright spot' in 2015, As hedge funds stumble, one firm prepares to buy illiquid stakes[more]

    Real estate secondaries sole 'bright spot' in 2015 From IPE.com: The secondary market for property was the sole “bright spot” over the course of 2015, as hedge fund secondaries saw deals fall by two-thirds, according to a wide-ranging survey of the market. Setter Capital said 2015 saw th

  5. Opalesque Exclusive: Directors want to be considered trusted partners by new manager[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A hedge fund director provides her perspective on emerging hedge fund managers. She will happily work with those who have set themselves up for future growth, s