Hedge funds with a focus on commodities are proving attractive to institutional investors looking for an easy gain and a hedge against inflation. Rather than investing directly in commodity indexes, pension funds and other big investors are looking for long or short protection by putting cash into hedge funds and funds of funds, experts said. "Commodity hedge funds combine some of the aspects of real asset strategies and risk control, and that is attractive to institutional investors," said Goran Hagegard of Greenwich Associates.
Jean-Pierre Jouyet, chairman of France's Autorite des Marches Financiers, said at an industry conference that circuit breakers might need to be implemented to deal with high-frequency trading practices. The initiative would be "rather like a pilot switching from autopilot to manual mode when he needs to take control ... in the same way as what has been decided in the United States," Jouyet said. He also said over-the-counter share trading should be reined in and use of organized multilateral facilities encouraged.
Hong Kong Exchanges and Clearing is considering expanding trading hours for three futures contracts to give investors time to adjust positions in response to news worldwide. "With Hong Kong becoming a renminbi offshore center, after-hours trading will enable HKEx to serve international trading interest relating to [renminbi] products in the future," the exchange said.
South Korea's Financial Supervisory Service plans to toughen oversight of currency-derivatives trading after bookkeeping irregularities were found in a review of foreign-bank branches. Kim Yung-dae, deputy governor of the regulator, said such practices could hinder the market.