CDS interdealer brokers fined for discussing fees

Friday, June 25, 2010

US regulator Finra announced that it has fined eight credit derivative interdealer brokers and suspended them temporarily from working in the industry

TAGS: High yield bonds People Leveraged loans

Comment by: Fishknife -. Posted 13 years ago [2010-06-25 11:27:02]

Rules are rules, and if the brokers broke the rules then they should pay the penalty. But it is also hard to feel sorry for the dealers that were the alleged victims here. Interdealer brokerage is hardly a natural monopoly. On the contrary there often seem to be a dozen brokers serving every credit default swap trader. We understand that this investigation started after a tip-off from within one of the brokers. It is certainly hard to see any dealer wanting to open this can of worms. We are sure that all involved will be glad to see the case closed.

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