ITG Hedge Fund CFO Survey Shows Shifting Regulation Top Concern

Jul 8 2015 | 9:12am ET

ITG has released the results of a survey taken of leading hedge fund CFOS in which respondents were asked about the key business challenges they face in an evolving capital markets landscape.  

The top concern among the survey participants is changing financial rules and regulations, according to ITG, followed by the need to streamline compliance processes. 

European moves to unbundle research payments from equity trading commissions are a clear concern, with 49% of hedge fund CFOs very or somewhat concerned.  

If Europe moves towards a “hard unbundling” of research payments from commissions, 65% of the poll’s participants said they would likely segregate the accounts of their European clients in order to continue using commission-sharing agreements for the non-European clients. Some 35% said they would consider ending the use of such agreements altogether.

Slightly more than half of the hedge fund CFOs surveyed already pay for at least some of their research using hard dollars. Meanwhile, 45% cited conversations with their fellow finance and compliance professionals as their main source of updates, followed by content from their brokers or vendors (31%) and content from business or trade publications (24%).

ITG’s poll surveyed more than 40 attendees of ITG’s CFO dinner in New York in late June. Fund sizes ranged from $50 million to $14 billion in assets under management, representing a collective total of more than $115 billion in AUM.

New York-based ITG is an leading independent execution broker and research provider with a broad suite of products for both emerging and established hedge funds.

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