FCA calls for industry to tackle opportunistic credit swaps

By Neasa MacErlean

The FCA has moved to discourage manipulation of credit derivative swaps by urging the industry “to improve the functioning of the credit derivative markets”. The Financial Conduct Authority is also encouraging firms to use the ISDA 2019 NTCE Protocol, a document from the International Swaps and Derivatives Association (ISDA). The Protocol, due to start on 13 January 2020, is aimed at tackling the growth of manipulation by using so-called ‘narrowly tailored credit events’.