Gerhard Schröder today promised closer monitoring of hedge funds in Germany amid continued concern about their activities in the country. It came as BaFin, the German securities regulator, said it found "indications" of possible concert party trading in Deutsche Börse.

Schröder, the German Chancellor who last week ordered a government probe into hedge funds aimed at improving transparency, said that he cannot rule out changes in the law that would impose new controls on hedge funds, Bloomberg reports.