Hedge funds warn SEC dealer rule is ‘unenforceable’

Private funds say they are collateral damage of poorly drafted push to regulate PTFs

SEC building in Washington DC
The Securities and Exchange Commission

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

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 [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] 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 Risk.net? View our subscription options

If you already have an account, please sign in here.

You need to sign in to use this feature. If you don’t have a Risk.net 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: