Hedge funds warn SEC dealer rule is ‘unenforceable’
Private funds say they are collateral damage of poorly drafted push to regulate PTFs
US hedge funds are alarmed that they could be inadvertently hit by two proposed rules from the Securities and Exchange Commission that ostensibly seem to be targeted at non-bank market-makers.
“We have had a number of enquiries from our larger clients in the leveraged relative value hedge fund community who are concerned about getting swept in with both standards,” says a fixed income trading executive at a large US investment bank.
The SEC intends to change the statutory definitions for
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