Multiple Private Equity Firms Receive Notice to Suspend New Cross-Border TRS

CoinFeed, June 24 – According to a report by Shanghai Securities News, on June 24, several private equity professionals revealed that they received notices from their partner securities firms last night, with regulators requiring a suspension of new cross-border TRS (Total Return Swap) scale increases by managers. According to public information, TRS, or Total Return Swap, is a financial derivative that allows private equity firms to gain exposure to the returns (or losses) of overseas assets without directly holding them (principal does not leave the country) by entering into a return swap agreement with a counterparty securities firm. This year, due to the strong performance of the global technology sector, many private equity firms have been allocating overseas assets through cross-border TRS.