However, timing and sequencing are crucial: financial markets may still be severely segmented even though inter-market arbitrage starts again. Market participants’ confidence may be still fragile. In such circumstances, it is absolute necessity to avoid fallacies and misinterpretations with respect to assessing unconventional policies. I will present five Don’ts in order to avoid the fallacies which might otherwise mislead us.
As for the role to be played by the industry, more than ever I will support the proposal that the hedge fund sector would strive for best practices and that industry-led benchmarks would be a suitable tool to pursue this objective.