Operational Risk News

FSA rules forcing hedge funds to record and archive cell phone conversations to increase cost burdens

Financial Services Authority (FSA) regulations forcing financial institutions including non-
banks to record traders’ cell phone conversations and archive them for six months could prove
disproportionately costly for smaller to mid-sized hedge funds.
The requirements, which come into play in November 2011, are designed to curb fraud and insider
trading. However, the infrastructure does not come cheap, warned Greg Collins (pictured), chief
executive officer of IT and telecommunications consultancy JP Reis. While recording traders’
landlines has been going on for a while now, cell phones have been exempt from monitoring until
only recently.

Mar 01, 2011

Managers risk shoehorning illiquid investment strategies into Ucits format, says COO

Shoehorning illiquid investment strategies into Ucits wrappers could cause irreparable damage to the Ucits brand and hurt end investors in the event of liquidity drying up.

Feb 23, 2011

LCH Clearnet to launch IRS clearing for non-banks

LCH Clearnet is to launch clearing through its SwapClear Futures Commission Merchant (FCM) for non-bank users including asset managers who utilise interest rate swaps.

Feb 22, 2011

Altegris launches clearing business for managed futures industry

Altegris has unveiled a dedicated clearing business, which will provide clients with access to clearing and execution services across multiple merchants in the managed futures industry.

Feb 10, 2011

Hedge fund directors should sit on fewer boards and be paid more, according to industry experts

Capping the number of hedge fund boards directors can sit on while simultaneously increasing their remuneration could significantly improve corporate governance standards in the alternatives space, according to industry experts.

Feb 10, 2011

Fund managers anticipate greater outsourcing to streamline costs, says report

Many fund managers anticipate low returns on their equity products in 2011 – something they predict could lead to an increase in outsourcing, according to a survey by RBC Dexia and Accenture.

Feb 07, 2011

Proposals on CCPs in MiFID consultation could hurt hedge funds

European regulators face a backlash from hedge funds following proposals to ban central counterparty clearing house (CCP) –eligible trades that CCPs refuse to process.

Feb 02, 2011

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Hedge fund managers show disapproval towards EU short-selling proposals

Hedge fund managers have expressed their disdain for the European Union’s (EU) proposed short-selling disclosure requirements. Forcing fund managers to publicly disclose their net short positions could distort financial markets and hinder sound risk management, according to the report by Oliver Wyman.

Feb 01, 2011

Communication solution to help set and maintain collateral for OTC derivatives transactions unveiled

The Depository Trust & Clearing Corporation (DTCC), MarkitSERV and AcadiaSoft are working together to deliver a joint solution for improving communication regarding the setting and maintaining of the collateral required between counterparties to over-the-counter (OTC) derivative transactions.

Jan 28, 2011

Bloomberg unveils single platform integrating front to back office for hedge funds

Bloomberg Trading Solutions has launched a single platform integrating front-to-back office tools for hedge funds trading in FX, fixed income and equity.

Jan 26, 2011

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