derivatives

Six weeks to respond to derivatives proposals

Wall Street traders baffled by mystery trader

Fee-earning AUM up 22%

Cuts in Europe and US

Pan-European fund remains soft-closed

Investors are not receiving adequate information on the extent to which funds are being levered up through the use of derivatives, a review by the Financial Conduct Authority (FCA) has found.

Jupiter has written to unitholders in Ariel Bezalel's £1.6bn fund, asking them to vote on plans which would give the manager wider powers to use derivatives to take short positions.

The recent sell off in the bond market and growing liquidity issues have forced bond investors to use similar hedging techniques, undermining their effectiveness and causing concerns about how much downside protection funds really have.

The Financial Conduct Authority (FCA) has intervened in a test case in which the Royal Bank of Scotland (RBS) is accused of mis-selling interest rate swaps.

Tullett Prebon's chief executive Terry Smith wrote a letter to the International Swaps and Derivatives Association (ISDA) back in 2010 to question the rate setting process, but was ignored, the Telegraph reports.