Much of the recent discussion on hedge funds has revolved around this point. 5. The remarkable initiative by London-based hedge-fund managers to consider introducing improved, and possibly also binding, sectoral standards is an indication of the real potential that exists for agreement between official agencies and market players on the urgent need for greater transparency. 6.
The fact that financial markets are becoming more complex is partly explained by their growing geographical integration. At the same time, the emergence of closer links between European banks raises the question of how banking supervision should be structured.