18/08/2010 Author: Katy Mughan

Aima welcomes OTC derivatives reform

The Alternative Investment Management Association (Aima) has urged European Union policymakers to push ahead with reforms of over-the-counter (OTC) derivatives.

The global hedge fund industry association told EU policymakers that the benefits the reforms would bring would outweigh increased costs.

Hedge fund managers would have to bear significant costs associated with administrative and operational changes the reforms would require.

Andrew Baker, Aima CEO, said: “Managers recognise the need for such reforms and will continue to work closely with policymakers to ensure that reforms and new regulations are well thought-out, coordinated and give due consideration to all the parties active in  the OTC derivatives market."

“This is one of the central pieces of the reform agenda leading to the reduction of systemic risk. If designed properly, all market participants will benefit. Moreover, the whole economy will benefit if the incidence and the impact of future market and financial instability is reduced.”