FCA quizzes hedge funds on interest rate exposure

Regulator wrote to large hedge funds in August, following volatility in UK interest rates market

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Big hedge funds received a letter from the UK's Financial Conduct Authority (FCA) in early August, asking for information on their exposure to rising interest rates – a request some see as a response to violent moves in UK interest rate markets in June, which was rumoured to be the result of a hedge fund sell-off.

The letter, which a spokesperson for the FCA confirms was sent to major UK hedge funds, has also prompted concern in the sector. While recipients see it as a sensible enquiry, and

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