Regulating hedge funds.

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Daníelsson, J.; Zigrand, JP.;
  • Journal: Financial stability review, issue 10 April, pages 29-36

Due to the ever-increasing amounts under management and their unregulated and opaque nature, hedge funds have emerged as a key concern for policymakers. While until now, hedge funds have been left essentially unregulated, we are seeing increasing calls for regulation fo... View more
  • References (8)

    1990 1992 1994 1996 1998 2000 2002 2004 2006 Funds (left-hand scale) Estimated assets (right-hand scale)

    1 Hedge Fund Research, Inc., © HFR, Inc., January 2007,

    2 Hedge Fund Research, Ibid.

    3 Macro funds attempt to identify inefficient pricing in stock markets, interest rates, foreign exchange rates, and physical commodities. Their top-down approach concentrates on understanding how global macroeconomic and political events affect the valuations of financial instruments; they tend to have broad investment mandates that allow them to hold positions in practically any financial instrument in any market.

    4 Fung (W.) and Hsieh (D. A.) (2000): “Measuring the market impact of hedge funds”, Journal of Empirical Finance, vol. 7, pp. 1-36.

    2001 2002 2003 2004 2005 2006 USD classified held by US and foreign banking organizations USD classified held by nonbanks Nonbanks' share of total classifications (right-hand scale)

    23 Steel (R. K.) (2007): “Remarks of under secretary for domestic finance Robert K. Steel on private pools of capital,” February 27.

    24 Ferguson (R.) (2006): “Financial regulation: seeking the middle way,” Fourth Joint Central Bank Research Conference on Risk Management and Systemic Risk, Frankfurt, Germany, November.

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