In May 2010,the German financial regulator, BaFin, enacted a ban on so-called "naked short selling" of credit-default swaps on euro zone government bonds, meaning investors would not be allowed to bet against the government being able to repay its debt unless they actually owned the underlying bonds.
But, just as the true extent of Greece debts began to worry investors, Goldman put on another hat. Last July, it sent clients a 48-page primer on credit-default swaps entitled "C.D.S. 101." The report said that credit-default swaps enabled investors "to short credit easily" — that is, to bet against certain borrowers. The report made no mention of Greece. But its disclosure in March 2010 fueled the suspicions of European officials who have called for investigations into the role swaps have played in the current crisis.
etc. ------------------------------------------------------------ on CME news "Despite others' attempts to make this a competitive issue, we should remain focused on the amendment's positive impact on managing credit risks and reducing broader industry systemic risks," the executives said in the memo.
Senate Democrats appear to have enough votes to pass the bill. A final vote is expected by the end of the week that would bring big changes for derivatives markets, forcing many new products through exchanges and clearinghouses. [ID:nN13247555]
CME is the world's biggest operator of futures exchanges and runs one of its biggest clearinghouses. Maintaining walls between futures clearinghouses is key to CME's ability to turn a profit because it prevents new entrants from readily building off its established liquidity.
Donohue and Rich said they supported the bill's "open access" requirement under which traders may choose where to clear swaps.
YOU'VE GOT TO THINK THAT THEY LEARNED NOT TO TINKLE WITH THE INDUSTRY THAT SAVED THE BANKING SYSTEM go wonder?