Backtesting has a place in structured products market
While some national regulators look unfavourably on backtested data in marketing material for structured products, a panel at the Structured Products Europe conference says it has a place in the market
While a number of national regulators are hesitant about or resistant to the idea of including backtesting data in structured products marketing and support documentation, product providers should still be performing the tests internally as a means of best practice, according to a panel of regulatory experts at the Structured Products Europe conference in London on November 18.
Some regulators such as Germany's BaFin and the Financial Industry Regulatory Authority (Finra) in the US have come out
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