On Tuesday 28 March, at a conference in Frankfurt on banking supervision, the Chair of the Single Supervisory Mechanism (SSM), Andrea Enria, said he was “very concerned” about the “very opaque” functioning of the credit default swap (CDS) markets despite the strengthening of the regulatory framework undertaken after the 2008 financial crisis, and its possible negative impact on capital markets.
There are “very opaque, very shallow and very illiquid” markets, such as single-name...