Hedge Funds Review – Hedge funds should keep in mind differences in US and English regimes when structuring swap transactions and the disparate results possible under law if a broker-dealer swap counterparty is insolvent.
Hedge funds rely on broker-dealers to provide an array of services and products including over-the-counter swaps. Historically, when a hedge fund entered into a swap with a broker-dealer, the failure of the broker-dealer was a remote concern.
