FSA has published a report assessing the possible sources of systemic risk from hedge funds. The report sets out the results of its hedge fund and hedge fund as counterparty surveys carried out in late 2010. FSA says the results suggest little change in leverage and hedge funds have only a small footprint in most markets so risks are limited. Also, counterparties have taken measures to tighten their exposure to hedge funds. It says though that there are still some risks to hedge funds, particularly if they cannot manage a sudden withdrawal of liabilities during a crisis period, which may result in forced asset sales that in turn may cause pressure on market liquidity and pricing. (Source: Assessing the possible sources of systemic risk from hedge funds)