Financial Regulatory Forum

Short-selling and CDS regulation in EU: Less to nakedness than meets the eye, funds and firms argue

By Guest Contributor
March 5, 2012

By Peter Elstob

LONDON/NEW YORK, March 5 (Thomson Reuters Accelus) -¬†Regulators and market participants continue to differ fundamentally over when a credit default swap should be deemed to be uncovered, or ‘naked’, and when investors are using CDS as a legitimate hedge. If a sovereign CDS can be demonstrated to be hedging counterparty or systemic risk, it can be exempted from the provisions of the proposed¬†European short-selling regulation, which is aimed at abusive use of sovereign CDS by financial institutions to bet against countries’ debt.

New credit default swaps system to help volumes, liquidity in Asia – trade body

By Reuters Staff
December 21, 2009

By Umesh Desai

HONG KONG, Dec 21 (Reuters) – Credit default swaps in Asia will now follow a standardised trading format designed to facilitate centralised clearing, improve transparency and in the long-run raise transaction volumes, a trade body said on Monday.

Europe’s derivatives sector warns on regulation

By Reuters Staff
September 2, 2009

By Huw Jones
LONDON, Sept 2 (Reuters) – The trading of privately-arranged derivatives contracts must not be forced onto exchanges and there must be no penalty for choosing not to clear trades, Europe’s derivatives industry said on Wednesday.
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