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Mutual Funds Face Leverage Caps Under SEC Rule On Derivatives
FYI: The proposal approved Friday by the Securities and Exchange Commission would cap the leverage a fund can derive from derivatives at 150 percent of its net assets. Many funds also would be required to hold more collateral against potential losses under the rules, which represent one of the most aggressive responses yet by regulators to fund risks exposed during the 2008 financial crisis. Regards, Ted http://www.bloomberg.com/news/articles/2015-12-11/mutual-funds-using-derivatives-face-new-limits-under-sec-plan