Summary of the reading material Article Example | Topics and Well Written Essays - 1500 words

Summary of the reading material - Article Example The stakeholders are now experiencing the shape of the new regulations and the resultant changes, which are about to influence the strategic imperative driving the strategy of leading hedge fund organizations (Citi Investor Services, 2014). Notably, this marks a shift of the factors driving change in the hedge fund industry. A shift in the investor base had been driving major industry evolution since the GFC until recently. Indeed, the article reckons that the emergence of large institutional investors seeking to allocate capital to hedge fund managers have been driving changes in the industry for the past five years (Citi Investor Services, 2014). These changes adopted diverse strategic imperatives as institutional investors emerged as the industry’s main source of capital (Citi Investor Services, 2014). The investors’ demands changed key structural aspects of the market. Ideally, by financing the industry with huge sums of capital within a concentrated period, institutional investors determined the behaviors of the investment managers and fostered structural changes in the industry (Citi Investor Services, 2014). However, response to regulatory changes is now the main driver of change in the industry where it creates different opportunities and challenges for the hedge fund industry. The survey establishes the reality and eminent approach of major implementation deadlines upon the industry players. The formulation and implementation of a broad and significant set of global regulations is now the dominant force of industry change. These regulations include the Volcker Rule, Dodd-Frank, EMIR, OTC derivative rules, Liikanen Proposal among other rules (Citi Investor Services, 2014). The new regulatory changes are offering new opportunities to hedge funds where they can optimize their business approach. The Volcker Rule and Liikanen Proposal has eliminated the proprietary trading talent from sell side organizations that allowed hedge funds and other