UK, US Watchdogs Crack Down On 'Opportunistic' Defaults

Law360, London (June 25, 2019, 12:47 PM BST) -- Financial regulators in Britain and the U.S. have said they will work together in derivatives markets to tackle “opportunistic strategies” employed by companies, such as deliberately missing payments to force a default and get compensation from credit-default-swap contracts.

The Financial Conduct Authority said on Monday that it will collaborate with the Commodity Futures Trading Commission and the Securities and Exchange Commission in the U.S. to tackle concerns about the multi-trillion dollar credit derivatives market.

The watchdogs said in a joint statement that they will crack down on poor conduct, including companies that use credit default swaps, a product that compensates lenders...

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