Since the last financial crisis of 2008 the study of its roots and main actors has occupied the effort of researchers from different areas (legal, financial, political, economical). This paper is structured with the aim of investigating the relation existent between two huge actors shadow banks and Hedge Funds under the common light of the Systemic Risk divided in its general categories (Credit Risk, Market Risk, Liquidity Risk, Settlement Risk, Concentration Risk and Operational Risk). The research staple point is the discussion about the eventual inclusion of Hedge Funds into the shadow banks sector. The analysis firstly conducted leads the research throughout the study of what are both shadow banks and Hedge Funds and where a correlation between them is detected. What is discovered is a multiplicity of relationships between some of which easy guessed, i.e. direct connection, other of more difficult and recent detection, i.e. the dubbed “bridge” connection. Secondly the paper takes particular care of the funds regulation in both U.S. and E.U. studying if the actual set of rules is able to break the mentioned relation, putting out fund from the Shadow Banking System. Lacks in addressing regulation are detected, moreover in term of adequate scheme of ruling about Credit Risk and Settlement Risk of funds.
Even if some connections are proven, Hedge Funds cannot be completely considered as part of the Shadow Banking System as the existence of a set of rules about funds obliges to not consider the latter as an unregulated part of the financial market. Nevertheless the deficiency of the legal system in terms of deterrence of the Systemic Risk suggests that the activity of legislators has to be more addressed in regulating the mentioned connections, moreover in term of stop the way in which funds transport instrument of the Shadow Banking System into the regulated financial market.