Reed Smith Client Alerts

On November 16, 2017, the Loan Syndications and Trading Association (the “LSTA”) published its revised Code of Conduct (the “Code of Conduct”) and Statement of Principles for the Communication and Use of Confidential Information by Loan Market Participants (the “MNPI Principles,” and, together with the Code of Conduct, the “LSTA Guidance”). The Code of Conduct establishes general principles of business conduct and related procedures for all loan market participants. The MNPI Principles outline broad guidelines for the receipt, use and communication by and to loan market participants and other arrangers (“LMPs”) of confidential information that is generally available in the loan market. The following is a brief overview of these important loan market documents.

Reasons for the Revisions

The LSTA is continuously reviewing and revising its primary and secondary form documents, as well as its market guidance. The Code of Conduct was published in 2008, while the MNPI Principles and Confidential Information Supplement (now combined to form the MNPI Principles) were published in 2006 and 2008 respectively. Since these documents were last published, the loan market and regulatory environment for LMPs has changed significantly. Because of these changes, the LSTA, in consultation with market participants, determined that the time was ripe to publish the revised LSTA Guidance.