Buy side targets leverage cap in SEC derivatives plans

AQR says its managed futures fund could suffer larger drawdowns under new rule

Asset managers say proposed blocks on leverage will push firms towards riskier strategies

Asset managers have sharply criticised the Securities and Exchange Commission's (SEC's) proposed investment fund shake-up, speaking out against the regulator's idea of setting two fund leverage caps, at 150% and 300% of total assets, which would limit funds' derivatives use.

Under plans announced in December 2015, a fund's gross asset exposure, which includes synthetic exposure through derivatives, reverse repos and shorting, would be capped at 150% of assets, or 300% of assets if a value-at

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here