The Loan Syndications and Trading Association will be holding a meeting of the material non-public information working group Thursday. As first reported on the Credit Investment News' Web site Wednesday, it will be the first time both the buyside and the sellside will be working together; previously they had their own separate working groups.
Elliot Ganz, general counsel, said the group will be looking at the code of conduct and the confidential information supplement, which dates back to before 2000. It will also be discussing how MNPI applies to loan-only credit default swaps and total return swaps, and electronic platforms and the dissemination of information from them. At the end of the meeting he anticipates opening the conversation to members to see what areas they think needs to be addressed.
MNPI is an increasingly important issue as investors invest in both the private and public markets and the Securities and Exchange Commission continues to take a closer look at how information is exchanged. In the fall, the LSTA published a set of principles designed to help the loan market handle confidential information. The principles are designed to prevent MNPI gathered in the loan market from being used in the public markets (CIN, 10/13).
The LSTA worked for over a year before it published the principles and then spent a good amount of time educating the market on them. "Now its time to continue working," Ganz said. "No one thought we were done when we put out the principles, now its time to take the next step."
Collapsing the two separate working groups into one was made to better represent all sides. "I think we will get a better result, a more robust discussion with the joint working group," Ganz explained. Lisa Opoku from Goldman Sachs, Rob Milam from JPMorgan and Debbie Montick from Nomura are acting as co-chairs.
The LSTA was informing the 94 current members of the working groups last Wednesday night and Ganz anticipates even more people will want to become involved after they find out the organization is revisiting the topic. The first meeting will be a conference call.