Featured Product

    IOSCO Publishes Report on the Fourth Hedge Fund Survey

    November 23, 2017

    IOSCO published a report that presents the results of its fourth hedge fund survey. It provides an overview of the global hedge fund industry, based on data as of September 30, 2016. The report provides regulators with new insights into the industry, including the potential systemic risks this industry may pose to the international financial system.

    This biannual survey has become an important resource for regulators, given the lack of public and global data on hedge fund activities. The survey facilitates the regular collection and analysis of hedge fund data, enabling regulators to share information and observe trends regarding trading activities, leverage, liquidity management, markets and funding in the global hedge fund sector. Since the first survey was conducted in 2010, data collection has expanded due to enhanced regulatory reporting regimes in some jurisdictions and fewer legal constraints around the use and sharing of data. The observations of the fourth survey can be highlighted as follows:

    • In the two years since the previous results, global assets under management of hedge funds captured by the survey rose 24%. While this increase may reflect a combination of more widespread reporting across jurisdictions, market performance, and net fund subscriptions, it is not conclusive from the data.
    • The Cayman Islands continues to be the fund domicile of choice, making up 53% of the global total by net asset value (NAV). This is largely unchanged from previous years.
    • According to the data from the survey, equity long/short was the most widely used investment strategy, followed by global macro and fixed income arbitrage.
    • Gross leverage of the hedge funds in the survey was 7.1x NAV. This figure includes the notional values of interest rate and foreign exchange derivative contracts. Removing those from the data, gross leverage was 3.1x and net leverage was 1.1x.
    • At an aggregate level, there is a considerable liquidity buffer, suggesting that, in normal market conditions, hedge funds should be able to meet investor redemptions.
    • As of the measurement date, 3.8% of hedge fund assets had constrained redemptions through the use of liquidity management tools such as gates, suspensions, or side pockets.

     

    Related Link: Report (PDF)

    Keywords: International, Securities, Hedge Fund, Hedge Fund Survey, Systemic Risk, IOSCO

    Featured Experts
    Related Articles
    News

    APRA Consults to Standardize Submission Date for Quarterly Reporting

    APRA proposed to standardize quarterly reporting due dates for authorized deposit-taking institutions. The proposed standardized due date is 35 calendar days after the last day of the reference quarter, which will create a 14-calendar-day extension for credit unions and building societies.

    November 08, 2019 WebPage Regulatory News
    News

    EBA Publishes Methodology and Draft Templates for Stress Tests in 2020

    EBA published a package for the 2020 EU-wide stress test exercise for banks.

    November 07, 2019 WebPage Regulatory News
    News

    EC Publishes Results of Fitness Check of Reporting Requirements in EU

    EC published results of the fitness check of supervisory reporting requirements in financial services legislation in EU.

    November 07, 2019 WebPage Regulatory News
    News

    BCBS Assesses NSFR and LE Rules in Argentina and China as Compliant

    BCBS published reports that assess the implementation of net stable funding ratio (NSFR) and large exposures, or LE, framework in Argentina and China.

    November 07, 2019 WebPage Regulatory News
    News

    FSB Publishes Summary of Plenary Meeting in Paris

    At the meeting, the Plenary reviewed vulnerabilities in the global financial system, fintech developments (including developments in the crypto-asset markets), ongoing work of FSB, and the work program for 2020.

    November 07, 2019 WebPage Regulatory News
    News

    HKMA Highlights Technology Initiatives at the Hong Kong FinTech Week

    HKMA co-organized, with InvestHK, the Hong Kong FinTech Week 2019, which was a five-day flagship fintech event that attracted thousands of attendees worldwide.

    November 06, 2019 WebPage Regulatory News
    News

    ECB Report on Fallback Provisions in Contracts Referencing EURIBOR

    ECB published a report, by private sector working group on euro risk-free rates, presenting recommendations for fallback provisions in contracts for cash products and derivative transactions referencing EURIBOR.

    November 06, 2019 WebPage Regulatory News
    News

    EC Regulation on Homogeneity of Underlying Exposures in Securitization

    EC published the Delegated Regulation 2019/1851 regarding the regulatory technical standards on the homogeneity of the underlying exposures in securitization.

    November 06, 2019 WebPage Regulatory News
    News

    FSI Examines Regulatory Approaches on Climate Risk Assessment

    The Financial Stability Institute (FSI) of BIS published a paper that examines the regulatory approaches being used for climate risk assessment in the insurance sector, in particular through enterprise risk management (ERM) frameworks.

    November 06, 2019 WebPage Regulatory News
    News

    SRB Launches Q&A Process for Resolution Reporting

    SRB has setup a dedicated solution for raising questions on the resolution reporting.

    November 06, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4112