Isda rejects call for more hedge fund oversight

The Financial Services Authority warned in June that hedge funds could pose a particular risk to the financial markets because of their rapid growth in sectors such as derivatives. It recommended closer oversight of the funds to avoid possible crises in the future.

However, Isda argues that derivatives are not an asset class per se as they simply give investors a more efficient way of replicating a market position, and specific regulation for them is therefore inappropriate.

It also points out that defining hedge funds for regulatory purposes would not be easy – some but not all use derivatives – and that regulators would be better off concentrating on the dealers themselves.

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.

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