Study Of Hedge Fund Regulation In The Financial Market Stability Perspective

This paper discusses the regulation for the hedge fund through the research of relationship between the hedge fund and the stability of financial market. Base on the definition, history of the hedge fund, this essay studies the new characters and the relationship between the hedge fund and the financial market, and points out the positive and negative impacts to the financial market. Combine with the cases of speculation, this paper indicates the main problems of the regulation for the hedge fund.The problems of the past regulation include 6 aspects: the control of the leverage, the management of the risk brings to the hedge fund's business partners, the risks of liquidity, the management of the managers of the hedge fund, the regulation of the tax-free areas, and the disunited of the international regulation. Besides, the hedge fund plays an important role in the subprime crisis, because of its risks, leverage, and the lack of information transparency, it aggravates the influence of this crisis and cause more harm to the whole world.Finally, this essay brings up several suggestions of the new regulation system for the hedge fund to both the world and China.