In their joint letter, the U.S. Managed Funds Association and the London-based Alternative Investment Funds Association explained that an investment manager, a distinct legal entity, is a fiduciary responsible for implementing a hedge fund’s investment strategy and trading securities on a fund’s behalf. The investment manager trades securities as a customer of an intermediary; accordingly, the investment manager is the indirect member of a trading venue.
Commentary and musings on the complex, fascinating and peculiar world that is securities regulation
Friday, May 24, 2013
U.S. and Global Hedge Fund Groups Seek Guidance on German High Frequency Trading Legislation
In
a letter to the
German Federal Financial Supervisory Authority (BaFin), U.S. and global hedge
fund associations asked the regulator to issue guidance under the High
Frequency Trading Act to clarify that where an investment management firm
trades on a German organized market or multi-lateral trading facility on behalf
of funds that it manages, neither the investment management firm nor the funds
on whose behalf it trades are dealing for their own account, meaning that they
are therefore not subject to the definition of the Act and the associated licensing
regime.
In their joint letter, the U.S. Managed Funds Association and the London-based Alternative Investment Funds Association explained that an investment manager, a distinct legal entity, is a fiduciary responsible for implementing a hedge fund’s investment strategy and trading securities on a fund’s behalf. The investment manager trades securities as a customer of an intermediary; accordingly, the investment manager is the indirect member of a trading venue.
In their joint letter, the U.S. Managed Funds Association and the London-based Alternative Investment Funds Association explained that an investment manager, a distinct legal entity, is a fiduciary responsible for implementing a hedge fund’s investment strategy and trading securities on a fund’s behalf. The investment manager trades securities as a customer of an intermediary; accordingly, the investment manager is the indirect member of a trading venue.