A set of guidelines on the handling of non-public price sensitive information, set to be published in mid-May, warns European banks against the misuse of private information when trading instruments, such as credit default swaps, could lead to insider trading charges.

The guideline, set out by the European Working Group, is a collaborative effort of the Bond Market Association, the International Association of Credit Portfolio Managers, the International Swaps and Derivatives Association, the Loan Market Association and the London Investment Banking Association. The paper is the European application of guidelines recommendation published in October 2003 for the North American markets and demonstrates to European investors the seriousness with which banks and dealers, as well as regulators, treat the issue of price sensitive credit information.

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