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Image header Agence Europe
Europe Daily Bulletin No. 10559
ECONOMY - FINANCE - BUSINESS / (ae) finance

Formal adoption of regulation on sovereign CDS

Brussels, 22/02/2012 (Agence Europe) - On Tuesday 22 February, the Ecofin Council formally adopted the legislative proposal which will effectively end speculation on contracts providing cover against the risk of default by a sovereign debt issuer (sovereign CDS) by November 2012. Financial players should no longer be able to take out protection against the risk of a default by Greece with Greek sovereign CDS if they do not directly hold Greek sovereign bonds or if they are not shareholders in a bank or a strategic Greek business. The new regulation also brings in rules on short selling by harmonising the rules that national regulators can apply if financial stability is threatened. The United Kingdom abstained. The European Parliament took over, lock, stock and barrel, the inter-institutional agreement in November (see EUROPE 10495). (MB/transl.rt)

Contents

ECONOMY - FINANCE - BUSINESS
SECTORAL POLICY
EXTERNAL ACTION
INSTITUTIONAL
COURT OF JUSTICE OF THE EU
SUPPLEMENT