Short Sale Rule Could Spur More CDS Shorts
New rules on naked short sales may push more use of Credit Default Swaps. Hedge Funds and others use CDS in place or in addition to using equity shorts. Move could also move more transactions offshore: derivatives can be put on to fly under radar. SEC emergency order to curb improper shorts in financials effective Mon.7/21-should exclude Market Makers acc. to WSJ.
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