Trading

OTC industry hits back at European Central Bank’s criticism of ‘opaque’ CDS market

A spike in insuring Deutsche Bank debt is being blamed for a Friday stock selloff

The ECB does not regulate financial markets in Europe, which is the purview of the European Securities and Markets Authority and national regulators
The ECB does not regulate financial markets in Europe, which is the purview of the European Securities and Markets Authority and national regulators Photo: Getty Images

The trade organisation representing over-the-counter derivative market players has pushed back against suggestions that credit default swap trading was contaminating stock prices and deposit outflows.

Scott O’Malia, chief executive of the International Swaps and Derivatives Association has hit back at recent questions about the transparency of the CDS market saying that reforms after the financial crisis have made the market more transparent.

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