Hedge funds argue against tougher rules at CFTC roundtable

Funds that are deemed systemically important could be regulated in much the same way as banks, but hedge fund managers used a CFTC roundtable yesterday to argue regulators should not constrain investor choices

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Hedge funds should not be subjected to enhanced capital, leverage and liquidity rules, fund managers warned US regulators at a Commodity Futures Trading Commission roundtable on risk management practices yesterday, arguing that increased regulatory requirements would stifle innovation and liquidity.

"[Regulators] shouldn't be telling hedge funds what contracts they can negotiate or how much leverage they can have," said Manish Mital, general counsel at Halcyon Asset Management in New York

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