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

    BoE Clarifies Approach to Treatment of Payment Holidays on Form PL

    BoE published a statistical notice (Notice 2020/9) explaining the approach for treatment of payment holidays on the profit and loss return or Form PL.

    August 11, 2020 WebPage Regulatory News
    News

    BoE Provides Reporting Update on Form AS and Form FV

    BoE updated the known issues document for the statistical reporting Forms AS and FV.

    August 10, 2020 WebPage Regulatory News
    News

    FED Announces Capital Requirements for Large Banks

    FED announced individual capital requirements for 34 large banks and these requirements go into effect on October 01, 2020.

    August 10, 2020 WebPage Regulatory News
    News

    SRB Publishes Guidance on Implementation of Bail-In Tool

    SRB published a set of documents to give operational guidance to banks on implementation of the bail-in tool.

    August 10, 2020 WebPage Regulatory News
    News

    BIS Publishes Update on G20 TechSprint Initiative

    BIS published an update on the G20 TechSprint Initiative, which was launched in April 2020 and aims to highlight the potential for technologies to resolve regulatory compliance (regtech) and supervisory (suptech) challenges.

    August 10, 2020 WebPage Regulatory News
    News

    OSFI Provides Update on Implementation of IFRS 17 in Canada

    OSFI published a letter that provides an update on the milestones for the implementation of the IFRS 17 standard on insurance contracts.

    August 07, 2020 WebPage Regulatory News
    News

    EBA Provides Clarity on Implementation of Guidance on COVID Reporting

    EBA updated the report on the implementation of selected COVID-19 policies.

    August 07, 2020 WebPage Regulatory News
    News

    FSI Note Discusses Challenges Associated with COVID Relief Measures

    The Financial Stability Institute (FSI) of BIS published a brief note that examines the supervisory challenges associated with certain temporary regulatory relief measures introduced by BCBS and prudential authorities in response to the COVID-19 pandemic.

    August 06, 2020 WebPage Regulatory News
    News

    BCBS Consults on Principles for Operational Risk and Resilience

    BCBS is consulting on the principles for operational resilience and the revisions to the principles for sound management of operational risk for banks.

    August 06, 2020 WebPage Regulatory News
    News

    BoE Updates Template and Definitions for Form ER

    BoE updated the reporting template for Form ER as well as the Form ER definitions, which contain guidance on the methodology to be used in calculating annualized interest rates.

    August 05, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5650