Regulatory Alerts2021-05-28
ESMA Opinion on Collection of Information for Effective Monitoring of Systemic Risk under AIFMD Article 24(5)
The European Securities and Markets Authority (ESMA) issues an opinion recommending that National Competent Authorities (NCAs) require Alternative Investment Fund Managers (AIFMs) to report additional data to facilitate the effective monitoring of systemic risk. This guidance specifies that NCAs should collect information on high-frequency algorithmic trading volumes, geographical investment focus, short position hedging details, and specific risk metrics including Value at Risk, Net FX delta, and Net commodity delta. Furthermore, ESMA advises that NCAs require reporting from managers of non-EU master AIFs not marketed in the Union if their feeder funds are established or marketed within the EU.
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