Investors require more information on hedge fund risks, said Steven Maijoor, Chairman of the European Securities and Markets Authority (ESMA), Reuters reports. The planned European Union (EU) restrictions on shorting sovereign debt could undermine regulatory credibility, the EU’s new securities watchdog added.
ESMA will introduce a public consultation in July as part of its efforts to roll out new EU curbs on hedge funds, private equity groups and other alternative investment funds. The regulators will be required to provide sufficient information on the activities of alternative investment fund managers. The EU is also set to approve rules that will require all derivatives trades to be reported.
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