UK Watchdog Eyes Hedge Funds’ Activity in Sovereign Debt Markets

The UK’s Financial Conduct Authority has seen a “significant rise” in hedge fund participation in sovereign debt markets in recent weeks, when trading desks across Wall Street were rocked by tariff-driven volatility.

The watchdog has been discussing that increase in activity with its counterparts in the US, Nikhil Rathi, chief executive of the FCA, said in a Bloomberg Television interview.

“We share considerable amounts of data and we work really closely together on market developments and enforcement,” Rathi said of his counterparts in the US. “For example, in recent weeks, we’ve seen significant volatility in sovereign debt markets and ...