US regulators will begin requiring hedge funds to confidentially share more information about their investment strategies, and such funds are grousing as the Securities and Exchange Commission (SEC) starts to demand more control over them, as reported by Benjamin Bain for Bloomberg News.
The SEC and the Commodity Futures Trading Commission (CFTC) described the new regulations as a way to better keep tabs on risk in the financial system.
New rules approved on Thursday will require firms to provide more details to watchdogs, including on investments, borrowing, and counter-party exposure.
The SEC and the Commodity Futures Trading Commission (CFTC) described the new regulations, which were proposed in 2022, as a way to better keep tabs on risk in the financial system.
The Managed Funds Association, which represents hedge funds, called the rules “misguided” and said they will actually harm regulators’ ability to monitor risks. The new rules, approved Thursday, will require firms to provide more details on investments, borrowing, and counter-party exposure.
It comes after news earlier this week that hedge funds and proprietary trading firms that regularly trade US Treasuries will be labeled as dealers by the SEC — a tag that brings greater compliance costs and scrutiny.
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