The Committee on Rules of Practice and Procedure has proposed an amendment to a bankruptcy rule that could have profound implications for the market for distressed loans, trade claims and securities, the Loan Syndications and Trading Association (LSTA) said.

The proposed amendment would require any party representing more than one creditor, any ad hoc committee and any indenture trustee in a bankruptcy case to fully disclose its short and synthetic positions, including derivatives, for each creditor represented in the group. In addition, if the court or another party requests it, each party must disclose the price of their holdings and the dates in which they entered into the transaction.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.