Biz Brief: European Officials Mull a Ban on Naked Credit-Default Swaps
Details of the tentative restrictions remain unclear. According to a statement by the European Commission, measures would be "temporary in nature and subject to coordination" by the European Securities and Markets Authority. The move comes ahead of Tuesday's vote by the European Parliament to restrict trading in credit-default swaps.
European officials have grown increasingly aggressive in restricting speculative activity in the financial markets following rising public outrage. In a controversial move, Germany banned some naked short-selling in May.