International regulators are joining forces to strike against what they deem as “opportunistic strategies” and “manufactured credit events” in the multi-trillion-dollar derivatives marketplace.
“The continued pursuit of various opportunistic strategies in the credit derivatives markets, including but not limited to those that have been referred to as ‘manufactured credit events,’ may adversely affect the integrity, confidence, and reputation of the credit derivatives markets, as well as markets more generally,” wrote Commodity Futures Trading Commission Chairman J. Christopher Giancarlo, Securities and Exchange Commission Chairman Jay Clayton, and U.K. Financial Conduct Authority Chief Executive Andrew Bailey, in a joint statement. “These opportunistic strategies raise various issues under securities, derivatives, conduct and antifraud laws, as well as public policy concerns.”
