Global regulators propose liquidity preparedness measures for hedge funds and non-bank investors, focusing on risk management, stress testing, and collateral management.

Global regulators propose measures to enhance liquidity preparedness of hedge funds and non-bank investors, focusing on risk management, stress testing, and collateral management practices. The Financial Stability Board's draft recommendations aim to improve the ability of non-bank participants to cope with margin and collateral calls during market stress. This follows a series of events, including the "dash for cash" during COVID-19 lockdowns and the collapse of Archegos, that highlighted the need for better preparedness.

April 17, 2024
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