Regulatory experts say EU's naked CDS ban is ill-judged
The new rules are "another instance of the authorities blaming the wrong people and imposing the wrong policies", says Cass's Ian Marsh
A range of regulatory experts are characterising the controversial ban on naked credit default swap (CDS) trading in the EU, agreed by European members of parliament and the Polish presidency at a meeting on October 18, as ineffective, unjustified and politically motivated.
MEPs have decided to ban naked CDS – where an investor purchases CDS without holding a position in the underlying sovereign debt – as well as extend the European Securities and Markets Authority's (Esma) powers to restrict
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