FSA mulls derivative disclosure
City watchdog considers forcing disclosure of shares held via derivatives
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.
According to the Times the FSA is now considering making disclosure
of derivative holdings mandatory. The watchdog declined to comment.
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