David Karp, Co-Head of Special Situations & Alternative Investments, examines how bankruptcy court–imposed trading orders are increasingly shaping the claims trading market by adding regulatory-like oversight to what has traditionally been a largely unregulated space. He explains that these orders require strict compliance with notice and transfer procedures, and failure to adhere can result in severe consequences, including invalidated trades or loss of standing in court proceedings. Karp emphasizes that as trading orders become more common—often to protect debtor tax attributes and monitor claim ownership—market participants must carefully navigate these requirements to avoid disruption, delays and legal risk.