Use of information in the secondary debt market for loan trading
Produced in partnership with Diane Roberts of Reed Smith LLP
Use of information in the secondary debt market for loan trading

The following Banking & Finance guidance note Produced in partnership with Diane Roberts of Reed Smith LLP provides comprehensive and up to date legal information covering:

  • Use of information in the secondary debt market for loan trading
  • Introduction
  • Is loan trading on the secondary market a regulated activity?
  • Establishment of information barriers
  • Use of 'Big Boy' letters
  • Relevant voluntary guidelines issued by the LMA, LSTA and other trade associations

BREXIT: As of 31 January 2020, the UK is no longer an EU Member State, but has entered an implementation period during which it continues to be treated by the EU as a Member State for many purposes. As a third country, the UK can no longer participate in the EU’s political institutions, agencies, offices, bodies and governance structures (except to the limited extent agreed), but the UK must continue to adhere to its obligations under EU law (including EU treaties, legislation, principles and international agreements) and submit to the continuing jurisdiction of the Court of Justice of the European Union in accordance with the transitional arrangements in Part 4 of the Withdrawal Agreement. For further reading, see: Brexit—introduction to the Withdrawal Agreement.

This may have an impact on this Practice Note in relation to regulation of the secondary market. For further information, see Practice Note: Brexit—impact on finance transactions.

Introduction

At present, there is no consistent approach as to how the possession of information (particularly confidential or material non-public information, being information that a reasonable investor would consider important in buying, holding or selling debt, including any information that could reasonably be expected to affect pricing of the debt) impacts upon the secondary debt market for loan trading. There are many reasons for this. One reason is that