It is therefore important that existing regulations be reviewed and abolished as much as possible while placing stronger emphasis on market participants’ self-responsibility and on honoring market discipline. It is essential that a framework be built in which diverse financial services are made available to the public, enabling them to choose the most efficient products or products that sufficiently meet their various needs.
I hasten to add, however, that tight regulation of hedge funds – such as we know for banks – is undesirable. In order to preserve the beneficial role that hedge funds play in today’s market, I would prefer a lighter approach. Greater, market-driven transparency could provide markets and firms with a better sense of the build-up of large, concentrated positions or crowded trades.