Regulators Don’t Enjoy CDS Games
Also name changes, revolving doors and hacking.
Well this is no fun:
That is a joint statement from the heads of the U.S. Securities and Exchange Commission, the U.S. Commodity Futures Trading Commission and the U.K. Financial Conduct Authority, who have all taken notice of “various opportunistic strategies in the credit derivatives markets” and have announced that they “will make collaborative efforts to prioritize the exploration of avenues” to do something about it, which is quite a bit less definitive than just doing something about it. If these opportunistic strategies were, for instance, market manipulation, then presumably one of the regulators would have brought a case by now. But they haven’t. Instead, they’ve announced plans to collaborate to prioritize exploring avenues.