U.S. and U.K. Regulators Focus on “Opportunistic Strategies” in Credit Default Swaps
Client Memorandum

Created date


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.