- Preserve execution choice: MFA agrees with the FCA that current evidence does not justify restrictions that steer trading toward particular venues or execution methods. Competition among trading methods promotes innovation, reduces costs, and helps managers deliver better outcomes for investors.
- Reduce market data costs: Address rising market data, connectivity, and licensing fees that limit access to liquidity, particularly for smaller asset managers. Explore tying market data fees more closely to production costs and advance a comprehensive, reasonably priced equity consolidated tape to give investors a market-wide view of trading activity.
- Remove unnecessary regulatory burdens: MFA supports the FCA’s proposals to simplify trade reporting and eliminate disproportionate requirements for algorithmic trading firms. MFA also opposes extending public reporting to equity swaps at this time, which could duplicate existing transparency, expose sensitive trading information, and increase costs for investors.
- Strengthen market resilience: MFA supports clear, pre-disclosed fallback arrangements for trading disruptions that preserve the integrity of the official closing price. That price underpins fund valuations, benchmarks, and derivatives settlement relied on by institutional investors.
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About the global alternative asset management industry
The global alternative asset management industry — including hedge funds, private credit funds, and hybrid funds — serves thousands of public and private pension funds, charitable endowments, foundations, and other global institutional investors. The industry provides portfolio diversification and risk-adjusted returns to help meet their funding obligations and return targets throughout the economic cycle.
About MFA
Managed Funds Association (MFA), based in Washington, D.C., New York City, Brussels, and London, represents the global alternative asset management industry. MFA’s mission is to advance the ability of alternative asset managers to raise capital, invest it, and generate returns for their beneficiaries. MFA advocates on behalf of its membership and convenes stakeholders to address global regulatory, operational, and business issues. MFA has more than 180 fund manager members, including traditional hedge funds, private credit funds, and hybrid funds, that employ a diverse set of investment strategies. Member firms help pension plans, university endowments, charitable foundations, and other institutional investors diversify their investments, manage risk, and generate attractive returns throughout the economic cycle.
