Hedge Funds to Enjoy Advantages Over Banks at Alternative Investments Conference

Golden Networking's High-Frequency Trading Leaders Forum 2010, May 27th, Flatote
l Hotel, New York City, to Analyze Potential Impact on Hedge Industry of Upcomin
g Regulatory Overhaul.
New York, NY, May 18, 2010 -- A recent journalistic note by Bloomberg BusinessWe
ek's Robert Schmidt explained that "the private investment pools have been large
ly silent during this year's legislative imbroglio, confident that the regulator
y proposal that directly affects themâ a requirement to register with the Securitie
s & Exchange Commissionâ won't crimp their business; hedge funds have thus far dodg
ed the Washington reform bullet." GoldenNetworking.net's upcoming High-Frequency
Trading Leaders Forum 2010, "Innovating and Profiting from High-Frequency Tradi
ng in 2010 and Beyond" (http://www.HFTLeadersForum.com), May 27th, 2010, at New
York City's Flatotel Hotel, will explain why, if hedge funds get light regulator
y treatment from Congress, they will end up with a huge competitive advantage ov
er commercial banks.
"The tightening of regulations on banks could usher in a new era of profitabilit
y for hedge funds, pushing money and trading talent their way. One example that
is gaining attention: Senators are about to give final consideration to the so-c
alled Volcker Rule, named after its proponent, former Federal Reserve Chairman P
aul Volcker, that would bar commercial banks from so-called proprietary tradingâ th
at is, solely for their own accounts. If it passesâ and a similar version is adopte
d by the House, which approved its financial overhaul legislation in Decemberâ star
traders in search of better bonuses may flock to hedge funds. The Volcker Rule
would also prohibit banks from owning hedge funds. The tougher leverage limits a
nd capital requirements now envisioned for banks could make it harder for them t
o compete against hedge funds' higher returns. A third proposal, to separate der
ivatives trading from commercial banking, is opposed by the Treasury Dept. becau
se it worries that more trading in the complex securities would gravitate toâ you g
uessed itâ hedge funds."
The note concludes: "The Obama Administration is comfortable with the current pr
oposals for hedge funds. Requiring funds to register with the SEC will give regu
lators a window onto the funds' opaque operations, a big improvement over the st
atus quo, the White House reasons. If a hedge fund grows too large, it would als
o face stepped-up oversight by the Federal Reserve under the proposed reform leg
islation."
High-Frequency Trading Leaders Forum 2010 is produced by Golden Networking (http
://www.goldennetworking.net), the premier networking community for business exec
utives, entrepreneurs, investors and diplomats, founded by former McKinsey consu
ltant and Columbia Business School MBA Edgar Perez. Upcoming Leaders Forums and
Business Networking receptions include:
High-Frequency Trading Happy Hour, (http://www.HFTHappyHour.com), June 8th, New
York City
Real Estate Leaders Forum 2010, "Successfully Investing in Distressed Real Estat
e Assets" (http://www.RealEstateLeadersForum.com), June 17th, New York City
Panelists, speakers and sponsors are invited to contact Golden Networking by sen
ding an email to info@goldennetworking.net. Golden Networking has been frequentl
y featured in the press, including recent articles in The New York Times, "Golde
n Networking Helps Job Seekers Make Overseas Connections" (http://www.nytimes.co
m/2009/11/07/nyregion/07network.html) and Columbia Business School's Hermes Alum
ni Magazine, "10 Under 10" (http://www7.gsb.columbia.edu/alumni/news/ten-under-t
en).
Contact:
Edgar Perez
Founder
GoldenNetworking.net
New York, NY
516-761-4712
eperez@goldennetworking.net
http://www.goldennetworking.net