Fri, Aug 26, 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. Opalesque Exclusive: Algorithms platform aims to target typical challenges found in quantitative hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva: Last month, Quantopian received investments from Point72 Ventures, the new venture capital arm of Steven Cohen’s Point72 Asset Management.

  2. LatAm hedge funds surge in 1H to +24.4%, emerging markets assets rise[more]

    Komfie Manalo, Opalesque Asia: Hedge funds investing in Latin America posted strong gains through mid-2016, reversing declines in four of the past five years, including the last three years, to lead all areas of hedge fund performance through the first half of 2016, according to the latest HFR Em

  3. Asia - LGT Capital Partners: Alternatives set for continued rise in Asia[more]

    From Asianinvestor.net: More flows are likely into insurance-linked strategies, private equity and trend-following strategies/CTAs, given the benefits of such investments, argues LGT Capital Partners. Despite the numerous quantitative easing programs and bailouts of recent years, the quest for

  4. Opalesque Roundtable: Low and high fee investments often better than mid fee hedge funds[more]

    Komfie Manalo, Opalesque Asia: Hedge funds that charge the low and high fees stuff often provide better returns than "those sort of mid-fee investments", said Keith Haydon, chief investment officer of Man FRM. (Alternative) investment managers who charge high fees would often provide the most int

  5. Hedge fund investors pull $5.7 billion in July[more]

    From Bloomberg.com: Hedge funds suffered a third consecutive month of outflows in July as investors withdrew $5.7 billion, according to industry tracker Eurekahedge. Redemptions totaled $20.7 billion in the three months through July, with money managers betting on equities suffering $18.4 bill