Focus on U.S. Regulation (State Street)

October 2011

KEYWORDS: Bank for International Settlements, CCP, central counterparties, CFTC, clearing, collateral, Commodity Futures Trading Commission, compliance requirements, Dodd-Frank Act, Exchange-Traded Funds, FATCA, Foreign Account Tax Compliance Act, foreign financial institutions, Form PF, hedge fund registration, Hedge Fund Regulation, Investment Company Act, investment risk, Liquidity, managed futures, net asset value, OTC derivatives, Private Equity, reporting requirements, SEC, Securities and Exchange Commission, SEF, straight-through-processing, swap execution facility, swaps, swaps data repository, tax, transparency, United States, venture capital

Authors:

George Sullivan

Organizations:
  • State Street

Summary:
As new US regulations descend upon the hedge fund industry, a key challenge has emerged: organising the flows of information required by new regulations into formats that are meaningful to both regulators and hedge funds themselves. New regulations such as the SEC’s Form PF, the Foreign Accounts Tax Compliance Act (Fatca) and the still- emerging rules for the trading, clearing and settlement of derivatives, don’t focus on controlling investor behaviour so much as on imposing unprecedented new demands for the aggregation and reporting of data to regulators.
Never before has the hedge fund industry faced this level of scrutiny or this potential compliance/reporting challenge. Practitioners, as well as regulators, have a vital interest in ensuring that information management is not allowed to impede the efficiency or systemic value of the hedge fund sector. Fortunately, leading hedge fund administrators are creating dashboard-accessible systems designed to channel and simplify this complex electronic reporting regime.

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