LSTA introduces penalties for delayed US loan trades

摘要

Rules penalising firms that delay loan trades took effect last Thursday. The start date was extended from July to give participants in the US$880bn US leveraged loan market more time to prepare for the changes, which are aimed at shortening settlement times and boosting market liquidity. The Loan Syndications and Trading Association (LSTA) has introduced the changes to help to move trade settlement closer to the seven-day completion period that it recommends, which will reduce market and counterparty risk.