The IMF said in Chapter 2 of its Global Financial Stability Report published on
the 6th that rapid growth in global hedge fund assets could amplify price
dislocations and liquidity stress during market volatility and, if hit by a
severe negative shock, may trigger systemic risk. It recommended stronger
collection of hedge-fund data and enhanced risk monitoring, plus targeted
prudential regulation and market-structure reforms to raise the sector's
resilience to market shocks.