The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Opinion

Insider trading rumours hit credit

Abuse of information prompts worries about integrity in credit markets.

What would trigger 12 securities industry trade associations to issue a joint statement reaffirming their commitment to the promotion of fair and competitive markets? Specifically they point out that the inappropriate use of material non-public information is not to be tolerated.

Rumours of trading on insider information in the credit markets are rife. They have intensified ever since institutions such as hedge funds started getting involved in loan markets with accompanying concerns about the sturdiness of their Chinese walls. And if current rumours are to be believed, UK regulator the Financial Services Authority is investigating a leading bank for trading credit default swaps when in possession of highly sensitive information.

A big part of the concerns arise because of the gap between supposedly private information in the loan market and the public securities sector (bonds and CDS). And the problem is set to escalate with the development of loan CDS where the underlying asset is inherently private.

The associations say that the perception of misuse could erode confidence in the integrity, as well as the liquidity and efficiency, of the securities and derivatives markets on which their members rely. And they argue that it is important to maintain a focus on this area given the fast-changing nature of the complex financial markets.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree