After a six month review, the UK’s financial regulator, the Financial Services Authority, is starting to monitor daily price movements in Lo...

After a six month review, the UK’s financial regulator, the Financial Services Authority, is starting to monitor daily price movements in London's burgeoning credit default swaps and loan trading markets. Analysts have expressed worries private investors may be exposed through hedge funds and other vehicles to these off-exchange markets which are more suitable for institutional investment. The FSA is concerned that some market participant are engaged in insider trading in the opaque CDS and loan trading markets. The fears have been prompted by structural changes in the loan underwriting market as new participants, hedge funds, may be getting access to privileged information then using it to trade other instruments, such as equities or CDSs. As these markets are not traded on exchanges, the FSA is monitoring unusual price movements by buying price data from a private vendor.