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In the week ending 13 November, 2015, EY's 2015 Global Hedge Fund and Investor Survey showed that hedge funds are confronting the impact of financial market regulations and challenges of evolving prime broker relationships. Regulations such as Basel III and Dodd-Frank have caused banks and their prime brokerage businesses to focus more closely on liquidity, balance sheet capacity and funding, resulting in changing economics for fund managers who finance trades through prime brokers. Twenty-nine percent of respondents said their prime brokers increased fees in the past year, and an additional 22% expect an increase in fees within the next year.

Fund managers using strategies such as distressed credit, fixed income and global macro, which can be balance-sheet intensive from the prime brokers' perspective, have been among those who have experienced price increases the most. Respondents now expect price increases and broker limitations to change the way they trade, including moving toward swap-based trade execution and reducing repo financing and overall leverage.

Meanwhile, the New York Hedge Fund Roundtable has found that hedge fund investors see lack of transparency as their major concern in China.

Millennium has launched a new currency hedge fund, with $25m in assets as inflows reached $3.5bn in 2015; a group of former Société Générale traders, led Jong Beum Kim, is planning to start a new hedge fund that aims to profit from Asian market volatility; and SPARX Asia Investment Advisors has teamed up with ML Capital to launch the SPARX OneAsia Long Short UCITS F......................

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