This article explores two recent regulatory developments in the management of derivatives risk. First, I examine proposed Securities and Exchange Commission Item 305 which would require both quantitative and qualitative derivatives disclosure for corporate registrants. Second, I review a recent...

Many investors demand position transparency from hedge fund managers in the belief that more information is better than less. However, certain hedge fund strategies create synthetic investment positions that resemble a short put option, and these positions are not revealed by position...

The U.S. SEC, the Commodity Futures Trading Commission, and AIMR have each established financial reporting requirements for the market participants within their regulatory scope. The performance presentation standards promulgated by these three bodies are compared in this presentation....

This paper addresses two issues regarding public pension funds. First, we examine what should be the appropriate rate at which to discount the liabilities of a public pension plan. We argue that a risk-free U.S. Treasury rate is an inappropriate discount rate for state pension funds. Public...