Politics & Regulation

AIMA warns of economic impact of EU ban on ‘naked’ CDS

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Global hedge fund association AIMA has warned EU policy-makers about the economic impact of potential restrictions on credit default swaps in sovereign debt, which have come a step closer following this week’s vote in the European parliament in favour of a ban on ‘naked’ CDS selling.

New sovereign CDS trading restrictions, which are being championed by the German and French governments in the face of opposition from the UK, look increasingly likely after a 34-8 parliamentary vote in favour of a draft law prepared by the European Commission.

AIMA’s warning came ahead of the key vote in the European