Transparency

Buy-side institutions are feeling the strain of new regulatory compliance requirements and increased demands from investors for transparency. In a Q&A, Misys' Jean-Baptiste Gaudemet explains how hedge funds and asset managers are improving risk mitigation, collateral management and reporting processes to satisfy the expectations of both regulators and clients.

Q. How are buy-side firms improving trading processes to meet new compliance requirements including AIFM, UCITS and Dodd-Frank?

The FIA Principal Traders Group and the FIA European Principal Traders Association today released their joint response to a consultation report issued by the International Organization of Securities Commissions seeking public input on the impact of technological changes on market integrity and efficiency.

Today the European Commission published it's proposals for measures on derivatives, credit default swaps (CDS) and short selling to restore confidence in financial markets. Below are links to the proposal briefs and comments released by ISDA, AIMA and members of the Economic & Monetary Affairs Committee. 

I'll continue to add links and more news comes in. You may also add your favorite links below in the comments section.

European Commission Press Conference Video

Bob Park of FINCAD explains how derivative valuation and risk measurement software or services can play a cost effective role in addressing concerns of transparency.

FINCAD Derivatives Transparency Scorecard enables corporate treasuries to determine the compliance and auditor-readiness of their financial instruments

FINCAD, the trusted provider of derivatives analytics, has launched the FINCAD Derivatives Transparency ScorecardTM. This complimentary online assessment allows financial professionals to determine the level of transparency and auditor-readiness of their derivatives valuation process.

The EP's Economics Committee on Monday adopted its position on the draft EU law regulating managers of alternative investment funds, including hedge funds. MEPs voted for new ways to deal with managers and funds located outside the EU, a proportionality system to regulate less risky funds more lightly, and rules on remuneration policies and short selling. They also made improvements to the directive's transparency and risk reduction rules.

John Avery, partner at SunGard Consulting Services, said, “The global OTC derivatives market is in a critical state of transition, largely because of pending regulations. Every participant in the listed and OTC market will have a different roadmap in response to anticipated regulatory changes. The focus on transparency, efficiency and market structure changes have highlighted numerous operational challenges that exist in processing OTC derivatives.

Northern Trust (Nasdaq: NTRS) has enhanced its offering to clients investing in hedge funds – including funds of hedge funds managers and direct institutional investors – with the launch of a new set of compliance monitoring capabilities that will enable clients to monitor their investments in real time according to their own investment guideline criteria.

The U.S. Commodity Futures Trading Commission (CFTC) today announced that it will begin implementing new transparency efforts outlined in a July 7, 2009, statement by CFTC chairman Gary Gensler. Starting Friday, September 4, 2009, the CFTC will begin disaggregating the data in its weekly Commitments of Traders (COT) reports and begin releasing, on a quarterly basis, data collected from an ongoing special call on swap dealers and index traders in the futures markets.

The Commodity Futures Trading Commission is directed by statute and provided with broad authorities to ensure the fair, open and efficient functioning of futures markets. In my first week as the Chairman of the CFTC, I instructed Commission staff to present all available regulatory options to carry out our duties and fulfill our mission. My firm belief is that we must aggressively use all existing authorities to ensure market integrity.