SEC Plan Forces Firms Like Archegos to Reveal Swap Positions
- Regulator on Wednesday proposed a slate of new regulations
- Money market funds would also face more liquidity requirements
The U.S. Securities and Exchange Commission is seeking to restrict hedge funds and family offices from using equity-based swaps that can be used to quietly build massive bets on companies.
Source: BloombergThis article is for subscribers only.
U.S. regulators are seeking to restrict hedge funds and family offices from using complex derivatives to secretly build huge stakes in public companies -- the types of trades that fueled the collapse of Archegos Capital Management.
The Securities and Exchange Commission proposed new rules to address a major regulatory blind spot exposed by fallout from the implosion of Bill Hwang’s firm earlier this year: Equity-based swaps that can be used to quietly build massive bets on companies.