That doing the reverse Desk’
Doing the reverse Desk is a slang term used by traders hedge funds to describe practices intended to trick other traders to copy their trades. Typically, this is done by small transactions that may directly contradict the trading activities of the Fund and enthusiastically to uncover these auctions by means of public one of several possible channels.
Penetration is the Reverse Desk’
Doing the reverse Desk describes one method, among many, that hedge Fund managers use to avoid becoming a victim of a copycat trade. Making a small bargaining contrast to the trading activity of the Fund, and disclosure of their tactics are designed to achieve two goals.
First, the Manager does not want other investors to co-opt their own trading strategies. Secondly, the Manager wants to conclude the transaction at prices most favorable to his Fund. On the “pumping” of the securities in the opposite direction to their actual situation, the Manager may be able to control the price more favorable direction. If multiple funds are making the same decision, the value of these assets is likely to go up.
Rumors and information disclosure in the hedge Fund industry
Rumors can quickly and informal managers in the world of hedge funds and those who follow them. Official reporting often lags several months behind the real trade and paint an incomplete picture. Managers can put a misleading story from the right source in the industry and watch as it quickly spread.
For comparison, the controlled disclosure that funds are required to make a relatively vague and to help the Fund managers to hide the details of their portfolios and strategies. Hedge funds can distribute their assets and sources of funding for the various agencies or to hire a special purpose (SPE) to hide assets that they would prefer not to expose to the public.
The disclosure that occurs is voluntary, dictated by the requirements of major investors and financial advisors who bring the Fund’s investors. If these groups insist that Fund managers can identify the strategy value of the net assets, a brief list of their positions or transactions. Commission on security and exchange Commission (sec) requirements, by contrast, go much further than forcing Fund managers to register in a second form ADV and providing a quarterly summary from their positions. Regulation of light allows the agent used deceptive competitive practices, how to do reverse table.
In recent years, hedge funds increasingly are discovering a wide range of investors. Regulators would like them to improve transparency, this trend will continue. To this end, the Act jobs 2013 weakened restrictions on the advertising of hedge funds. The Fund managers claimed, and regulators hope that shines a brighter light on the activities of the Fund will lead to greater transparency and less deception along this line make a return check.