With just a week before the EU Short Selling Regulation (EU 236/2012) comes into effect on the 1st November, we're starting to hear the sound of some very worried hedge funds.
FundApps has put all the rules in place to cover the upcoming regulations, which include short selling disclosures of EU equity and sovereign bonds & a ban on uncovered CDSs.
Using Rapptr, our disclosure platform, we have built up functionality especially for the regulation, including:
- Aggregation models for both Management and Non-Management activities (see image below)
- Calculation of sovereign debt exposures that use Modified Duration adjusted nominals
- Calculation of correlation between sovereign debt issues or between CDSs and the insured asset using the Pearson's Correlation Coefficient
- Automated creation of the required short selling disclosure documents
We also monitor:
- Non Primary Markets
- Threshold levels of sovereign debt for each EU issuer, which is based on debt outstanding and existence of futures markets