BOE Committee disagrees on EU Hedge Fund Draft

Draft European Union legislation designed to regulate the hedge fund industry would trigger “systemic failure and widespread market disruption” if it became law.

[mserve id=”Central_Bank_BOE.jpeg” align=”left” width=”400″ caption=”Bank of England” alt=”Central Bank of England BOE” title=”Bank of England”]
Those are the findings of the Financial Markets Law Committee (FMLC), which was established by the Bank of England, on the eve of a critical week for the EU hedge fund directive in Brussels.

The Times has learnt that European lawmakers will be presented today with about 2,000 amendments to the draft legislation, each of which must be debated.

Lawmakers in Brussels — led by the French — believe that the trading behaviour of hedge funds exacerbated the severity of the global credit crisis and played a key role in the collapse of a number of lenders.

Times Online

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza