The U.K. Takeover Panel expects to publish in August rules requiring dealers and hedge funds to disclose interests in takeover targets built up through derivatives. The panel's second consultation has now closed and it will finalize proposals later this month, said Charles Crawshay, assistant director general. Equity derivative officials are concerned the disclosure rules will increase compliance costs for hedge funds and could require a reorganization of dealers' market making and proprietary desks (DW, 4/22).
The International Swaps and Derivatives Association sent responses to both consultation exercises with recommendations for the panel. Louise Marshall, spokeswoman for ISDA in New York, declined additional comment. Equity trading officials, however, are not confident the panel will take account of responses. "The panel seems pretty determined to push this through," noted a senior equity official involved in the consultation process. Larger dealers may be able to adapt to more severe disclosure requirements, but it will be tough for smaller players and particularly hedge funds, he said.
