Threats to the integrity of financial markets posed by hedge funds begin to be taken seriously by countries exerting the main influence on the international financial regime, only when the threats involve their own markets, rather than the emerging ones. This marginalisation seems likely to remain true in the formulation of any new international initiatives regarding hedge funds. In order to protect their financial system stability, countries with emerging financial markets will thus have to continue to rely on national policy solutions. This presupposes the maintenance of necessary policy space, which in turn requires avoidance of, and resistance to, international obligations restricting this space.
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