On 24 June 2019, the FCA and the US Commodity Futures Trading Commission (CFTC) issued a joint statement on opportunistic strategies in the credit derivative markets. The statement outlines the respective agencies concerns and the commencement of collaborative efforts to address these concerns.
The joint statement provides:
‘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. These opportunistic strategies raise various issues under securities, derivatives, conduct and antifraud laws, as well as public policy concerns.’