"If CDS is considered a derivative, it should be used for both hedging and investment activity, which means naked CDS are fully allowed."

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"If CDS is considered a derivative, it should be used for both hedging and investment activity, which means naked CDS are fully allowed."

--Edouard Vieillefond, managing director of regulatory policy and international affairs at France's Autorité de Marchés Financiers in Paris, arguing against a ban on naked CDS.

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