Law360, New York (January 29, 2009, 12:00 AM ET) -- A draft bill circulating through the U.S. House Agricultural Committee would make engaging in a naked trade of credit default swaps a violation of the Commodity Exchange Act and would require nearly all over-the-counter CDS trades to be settled through a registered clearing institution.
The Derivatives Markets Transparency and Accountability Act of 2009 also calls for the U.S. Commodity Futures Trading Commission to set “appropriate position limits for all commodities,” increases the number of employees at the CFTC and establishes other controls on CDS trading. Those...
Draft House Bill Would Ban Naked CDS Trading
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