Hedge Funds

MFA backs Wall Street on reforms for credit derivatives


The Managed Funds Association this week expressed support for the initiatives put forth by 14 major Wall Street dealers to improve practices in the credit derivatives markets.

Hedge funds, of course, are major participants in the credit derivatives markets, which have exploded in size in recent years. This dramatic increase in transactions, however, has left a big backlog of unexecuted confirmations - a development of particular concern to regulators who worry that the lack of confirmations could mean big headaches in terms of settling claims in case of default.

In a March 10 letter to the New York