A dozen major market participants in bank debt trading recently announced the formation of the Debt Traders Association.
The association will work to promote the orderly development of a fair, efficient, liquid, and professional trading market for loans originated by commercial banks and other similar private debt. The association plans to establish standard settlement procedures, operational procedures, and market practices for trading par and distressed bank debt.
"The secondary debt trading market is evolving and growing rapidly in size and importance in relation to the broader capital markets," said association chairman Allison Taylor, a vice president at ING Barings. "Participating institutions deserve a marketplace that is as orderly, liquid, and consistent as possible, and DTA will be instrumental in making that marketplace a reality."