The U.S. Securities and Exchange Commission, the U.S. Commodity Futures Trading Commission and the U.K. Financial Conduct Authority issued a joint statement Monday saying that so-called manufactured credit events and other “opportunistic strategies” related to credit default swaps “may adversely affect the integrity, confidence and reputation” of the markets. The statement appears to suggest that some of these strategies could run afoul of antifraud laws, and it says the agencies will pursue collaborative efforts, with industry input, to address their concerns. Although short on specifics, the statement is noteworthy and we expect more to come.


This communication, which we believe may be of interest to our clients and friends of the firm, is for general information only. It is not a full analysis of the matters presented and should not be relied upon as legal advice. This may be considered attorney advertising in some jurisdictions. Please refer to the firm's privacy notice for further details.