Open to disclosure?

The UK Financial Services Authority released a new consultation paper on contracts for difference in November, with proposals to increase disclosure. Some claim more disclosure will make the market less efficient, but others claim the proposals don't go far enough. By John Ferry

In some quarters, contracts for difference (CFDs) are regarded as a vital instrument in the investor toolkit, a way to take cost-effective economic exposure to a company when it is not possible to access the shares directly. In others, they are firmly cast as the villains of the financial markets. These products, say critics, enable predatory hedge funds to quietly accumulate large stakes in target companies, before springing surprise hostile takeover bids.

With such a hullabaloo surrounding