EU May Bank Sovereign CDS Naked Shorts

Mar 10 2010 | 11:43am ET

The European Union may ban naked short sales of sovereign debt, it said yesterday.

European Commission President Jose Manuel Barroso told the European Parliament that—despite the findings that there is no evidence credit default swaps were being used to push Greece towards default by German regulators—that new “reflection” is needed on sovereign CDS.

“In the short term, we must achieve the necessary coordination to ensure that member states act in a coordinated fashion, most particularly for ‘naked’ practice,” Barroso said. “In this context, the Commission will examine closely the relevance of banning purely speculative naked sales on credit default swaps of sovereign debt.”

Barroso said the issue of naked shorts on sovereign CDS will be discussed at the next meeting of the G-20.

The EC—which drafted the controversial Alternative Fund Managers directive currently being debated in the European Parliament—plans to talk about measures to cut speculation in sovereign CDS at a March 16 meeting.


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR