LMA restricts use of borrower confidential information

Author: | Published: 8 Jun 2011

Loans should not be traded based on borrower confidential information - even if both parties have access to the same level of information, according to new guidelines issued by the Loan Market Association (LMA).

The LMA guidelines on transparency and the use of information, released on June 7, note that "market participants should not trade on material information which has not been made available to the whole of the lending syndicate".

In the section on best practice, the LMA said "this applies even where the counterparty to that trade has access to the same level...