What are we thinking about?

The Chilean Single Funds Act (*Ley única de fondos* - LUF) prescribes in Article 22, letter g), without prejudice to other prohibitions contained in other laws, that acts or omissions committed by management companies and, as applicable in each case, by persons participating in the fund's investment decisions or who, by reason of their office or position, have access to information regarding the fund's investments, which entail a breach of the following prohibition, are contr

Selling insurance against the risk of sudden price movements is a relatively simple trade to set up and access as an instrument. When the market is calm, it is also profitable. It allows for the accumulation of additional yields, especially when there were bonds with very low yields. We are talking about the volatility carry. The trade seeks to collect an insurance premium (not in a legal sense) from investors who want to pay for protection through derivatives—in this case, o

In capital markets, where financial resources are allocated and exchanged, there are at least two indispensable elements among many others: speed and certainty. With regard to the latter, while projections, models, and discount rates certainly matter, the final word ultimately belongs to the law. Can we enforce payment? Can we assert our rights? Is the instrument through which capital is deployed legally valid? A key component of the financial system illustrates this point we

Chile's Single Funds Act (Ley Única de Fondos, LUF) provides, in Article 22(g), that, without prejudice to the other prohibitions established in other laws, the following actions or omissions are contrary to the LUF when carried out by fund managers and, where applicable, by persons participating in the fund's investment decisions or who, by virtue of their position, have access to information regarding the fund's investments: engaging in conduct that violates the following p

The Chilean steel specialist company, Cintac, listed on the Santiago Stock Exchange (Nuam), has decided to delist and exit the public markets. Let us recall that corporations (S.A.) must list their shares, becoming publicly traded, only if they have more than 2,000 shareholders. In addition, the Financial Market Commission (CMF) can increase this number, provided that public trust is not compromised by doing so, taking into consideration the type of shareholder, the nature of

Instead of prolonged crises, capital markets suffer highly destructive hits in very short periods of time. This is not a statistical oddity or the quants’ fault. These events tend to be idiosyncratic and strongly procyclical, amplifying calm and triggering sudden sell-offs. The S&P 500’s volatility shows better averages but very volatile margins at its levels. A good example is Covid. The calm that preceded it is striking. Although the VIX warned us of the recession risk the

The new securities regimes, in general, aim to increase investment offerings, facilitate capital formation, and foster innovation. This must be accompanied by adequate investor protection, insofar as attention has been paid to the information provided to decide on an investment. Here we refer especially to the crypto industry, as a new capital regime. Jurisdictions have not decided to fully subject these assets to securities regimes or financial law in general. The reason for

Rule The rule we are analyzing tells us that, without prejudice to other prohibitions contained in other laws, the following acts or omissions carried out by the administrators and, as applicable in each case, by the persons who participate in the fund’s investment decisions or who, by reason of their office or position, have access to information about the fund’s investments, are contrary to the Single Funds Law (LUF). The rule then lists such prohibitions, among them paragr