CDS market pleads for mercy as Congress debates swingeing ban

30 Jan 2009

Traders, credit experts and lobby groups in the derivatives industry have responded with dismay and disbelief to the introduction of a bill to the US Congress this week to ban naked credit default swap trading.

If passed, the legislation would effectively kill CDS dealing in the US. It is estimated that 80% of CDS trading in the $29tr market is conducted by participants that do not own the underlying obligations of the reference entity.

House of Representatives agriculture committee chairman Collin Peterson, Representative for ...

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