EU to Tighten Oversight of Credit-Default Swap Traders

EU Financial Services Commissioner Michel Barnier said Monday that sovereign credit-default swap traders, blamed for worsening Europe’s debt crisis,  will face mandatory disclosure rules.

He said he would deal with the sovereign CDS market “very severely.” Credit-rating companies should also be subject to tougher transparency rules when rating a country’s ability to pay back its debt, he said. “These people don’t like being out in the light of day,” Barnier said of sovereign CDS traders at a press conference in Brussels. “We’ll flood them with light.” – Bloomberg

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