The UK's Takeover Panel is proposing to make buyers of
equity derivatives disclose their holdings as a way to stop
investors exerting hidden influence on mergers and
The Panel in early January issued a consultation paper
outlining why it wants to make market participants disclose the
use of contracts for difference (CFDs), which are derivatives
instruments that allow investors effectively to control shares
without owning them.
"This is a very sensible issue for the Panel to take forward
and a really good idea," said James Palmer, corporate partner
at Herbert Smith. "Equity derivatives should not be used to
avoid disclosure requirements."...