Know Your Shareholders: The Use of Cash-Settled Equity Derivatives to Hide Corporate Ownership Interests
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Authors:
Matteo Tonello
Eugenio S. De Nardis -
Publication Date:
July 2010 -
Report Number:
DN-009-10
Regulators across Europe are increasingly aware of the effects of hidden ownership, where investors use cash-settled equity derivatives to eschew disclosure rules while building up stakes in public corporations. Until more stringent transparency regulations are put in place, board members and senior executives should closely monitor their shareholder base.