“The proposed ban on naked short selling sovereign credit default swaps in member states will reduce liquidity in the CDS market, leading to increased volatility of CDS prices, undermine confi dence in member state sovereign bonds, and make it more expensive for member states to fi nance budgets.”
“The proposed ban on naked short selling sovereign credit default swaps in member states will reduce liquidity in the CDS market, leading to increased volatility of CDS prices, undermine confi dence in member state sovereign bonds, and make it more expensive for member states to fi nance budgets.”
—Andrew Shrimpton, a member in regulatory compliance at Kinetic Partners in London, in response to an E.U. agreement to ban so-called naked credit default swap trading on sovereign debt.
Secondary market selling of private bonds may be wreaking havoc with the primary market for public debt but the trades were still the right thing to do
Francesca Young,September 22, 2026
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