SEC reporting rule threatens CDS liquidity, say traders
Market participants say proposals for identifiable position reporting will hamper bank lending
A rule proposed by the US Securities and Exchange Commission will “severely” impair liquidity in single name credit default swaps, push up transaction costs, and have knock-on effects for bank lending and for trading in index CDSs, say market participants.
Under the security-based swap (SBS) position reporting measure, known as section 10B-1, parties that exceed a net $150 million long or short
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