{"id":23370,"date":"2011-07-07T07:22:15","date_gmt":"2011-07-07T11:22:15","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=23370"},"modified":"2011-07-07T07:32:56","modified_gmt":"2011-07-07T11:32:56","slug":"aima-hedge-funds-not-a-risk-to-financial-stability","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/07\/2011\/aima-hedge-funds-not-a-risk-to-financial-stability.html","title":{"rendered":"AIMA: Hedge Funds Not A Risk To Financial Stability"},"content":{"rendered":"<p><a href=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2011\/07\/odownload1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-full wp-image-23376\" title=\" Financial Stability Oversight Council \" src=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2011\/07\/odownload1.jpg\" alt=\"\" width=\"436\" height=\"224\" srcset=\"https:\/\/hedgeco.net\/news\/wp-content\/uploads\/2011\/07\/odownload1.jpg 648w, https:\/\/hedgeco.net\/news\/wp-content\/uploads\/2011\/07\/odownload1-300x154.jpg 300w\" sizes=\"auto, (max-width: 436px) 100vw, 436px\" \/><\/a>New York (HedgeCo.net) &#8211; As the Financial Stability Oversight Council mulls over who will be subjected to higher levels of regulatory scrutiny, the Alternative Investment Management Association (AIMA) today re-iterated its belief that no hedge fund manager based or operating in the US or elsewhere currently poses a risk to financial stability.<\/p>\n<p>\u201cWe believe that no single hedge fund firm today is sufficiently large, leveraged, complex or interconnected that its failure or financial stress would cause a market disruption sufficient to destabilise the financial system,\u201d the Chairman of the\u00a0global hedge fund association\u00a0Todd Groome, said.<\/p>\n<p>Both the UK\u2019s Financial Services Authority hedge fund risk report and the FSA\u2019s hedge fund survey, found that major hedge funds \u2018did not pose a potentially destabilising credit counterparty risk\u2019, and that none of the large hedge funds they have examined currently poses \u2018a significant systemic risk to the financial system\u2019.<\/p>\n<p>\u201cHedge funds collectively represent a relatively small group of extremely heterogeneous and often very small businesses, and even their collective positions and exposures are not such that individual failures pose a risk to financial stability,\u201d Groome said. AIMA also stressed that hedge fund firms employ significantly lower levels of leverage than banks and some other financial institutions.<\/p>\n<p>\u201cBy having managers register with and report to the Securities and Exchange Commission and other national authorities, including FSOC, more data will be available to allow better monitoring and assessment of markets.  As such, hedge funds can contribute to a more effective systemic risk monitoring system,\u201d Groome concluded.<\/p>\n<p>Editing by Alex Akesson<br \/>\nFor <a title=\"hedge funds\" href=\"http:\/\/www.hedgeco.net\">HedgeCo.net<\/a><br \/>\n<a href=\"mailto:alex@hedgeco.net\">alex@hedgeco.net<\/a><br \/>\n<a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\">HedgeCo.Net<\/a> is a premier <a title=\"hedge fund database\" href=\"http:\/\/www.hedgeco.net\">hedge fund database<\/a> and community for qualified and accredited investors only. Membership in <a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\">HedgeCo.net<\/a> is FREE and EASY. We also offer FREE LISTINGS for <a title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\">Hedge Funds<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New York (HedgeCo.net) &#8211; As the Financial Stability Oversight Council mulls over who will be subjected to higher levels of regulatory scrutiny, the Alternative Investment Management Association (AIMA) today re-iterated its belief that no hedge fund manager based or operating [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16005,3],"tags":[],"class_list":["post-23370","post","type-post","status-publish","format-standard","hentry","category-developing-stories","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/23370","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=23370"}],"version-history":[{"count":7,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/23370\/revisions"}],"predecessor-version":[{"id":23377,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/23370\/revisions\/23377"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=23370"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=23370"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=23370"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}