NY plans to regulate CDS itself

Author: Nicholas Pettifer | Published: 24 Mar 2010

Senator Dodd’s financial bill does not propose the treatment of credit default swaps (CDS) as insurance, so New York State is taking the law into its own hands.

Last week, the Insurance Committee of the New York State Assembly released a draft bill  that proposes the licensing of credit protection sellers as credit default insurance corporations (CDICs). It also plans to ban naked CDS completely.

“If sellers have to be licensed, then there will be more capital requirements and more regulation,”...