Archives: Broker dealers

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The watchdog sniffs out CFDs

The Financial Conduct Authority (“FCA”) has recently turned its attention to firms who may mis-sell contracts for difference (“CFDs”) to customers. The FCA says that it has  a “serious concern” about the market. On 12 January 2018, following a 12 month review of the CFD market,  the FCA issued an ominous warning in the form of a “Dear CEO” letter addressed … Continue Reading

Closing out derivative contracts following Brexit

Since the shock Brexit vote on 23 June there have been big movements in a number of financial markets, as participants of all types reposition themselves for the period of uncertainty that the leave vote has ushered in. Regardless of the eventual terms of a UK exit from the EU, market movements that have already happened can be … Continue Reading

The dangers of short selling in secondary market debt trades

A recent case in the English High Court has provided a timely reminder to broker dealers and investment funds trading high yield bond and loan tranches on the secondary market of the problems that can arise if a chain of trades breaks down. Molton Street Capital LLP v Shooters Hill Capital Partners and Odeon Capital … Continue Reading
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