EUROPE: CESR publishes responses to consultation on eligiblity of hedge fund indices for underlying of derivatives

Friday December 8 2006

When CESR published its final advice to the European Commission on clarification of the definition concerning eligible assets for investments by UCITS, the question of whether hedge fund indices (HFIs) can fall within the definition of `financial indices` contained in the UCITS Directive was left outstanding.

CESR undertook to take views from market participants on issues related to this matter. The consultation closed on 30 November 2006 and CESR has now published the responses received, although not yet providing its feedback on those responses. The responses are broadly supportive of allowing hedge fund indices as financial indices.

The responses can be viewed at the above link.