LONDON, May 31 (Reuters) - The European Commission will propose greater transparency in the trading of credit default swaps of eight top banks to mirror rules in U.S. markets, a European Union document seen by Reuters showed on Wednesday.
So-called single name credit default swaps have come under regulatory scrutiny after the fall and state-backed rescue of Credit Suisse triggered high volatility on the CDS market for some systemic banks, Deutsche Bank in particular, on March 24.
"One of the conclusions on the events of Friday, 24 March, was that single name CDS contracts are opaque and illiquid," the EU executive body said in a document for a meeting of EU states on Thursday.
The Commission said it proposes to re-insert CDS on Santander, BNP Paribas, Credit Agricole, Deutsche Bank, ING Bank, Intesa Sanpaolo, Societe Generale and DZ Bank into the scope of derivatives transactions subject to post trade transparency.
Incomplete and asymmetrical reporting of CDS contracts linked to systemically important banks causes insecurity in markets during shocks, the paper said.
Persons:
Intesa, Huw Jones, Jon Boyle, Kirsten Donovan
Organizations:
European, Reuters, Suisse, Deutsche Bank, Santander, BNP, Credit Agricole, ING Bank, Societe Generale, DZ Bank, Thomson
Locations:
EU