FSA mulls derivative disclosure

City watchdog considers forcing disclosure of shares held via derivatives

Written by Nicholas Neveling

Hedge funds and other market players that hold shares in companies via derivatives may be forced to disclose their holdings under plans under consideration by the Financial Services Authority.

Hedge funds have used derivatives to secretly build up stakes in takeover targets, and have only had to disclose their interests when a formal bid is actually made.

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According to the Times the FSA is now considering making disclosure of derivative holdings mandatory. The watchdog declined to comment.

Further reading:

Dealmakers eye new panel rules

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