CFTC’s Gensler says unconvinced about CDS ban

March 16, 2010

    BRUSSELS, March 16 (Reuters) – The derivatives market remains a “dark ocean” that needs more transparency but it was unclear if a ban on credit default swap trading would work in practice, a top U.S. regulator said on Tuesday.
   “I am not sure how an outright ban would work mechanically,” Gary Gensler, chairman of the U.S. Commodity Futures Trading Commission, told the European Parliament.
   An outright ban would be difficult to police and the answer was greater transparency and supervisory powers to set position limits, Gensler added.
   European Union finance ministers, also meeting in Brussels on Tuesday, were due to discuss calls from Greece to crack down on so-called naked selling of CDS contracts which it blamed for amplifying its debt woes. (Writing by Huw Jones, editing by Mike Peacock) ((Reuters messaging:; + 44 207 542 3326;
Tuesday, 16 March 2010 09:00:08RTRS [nLDE62F0FJ] {C}ENDS

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