The European Parliament voted 34-8 to ban naked credit default swaps as proposed by the European Commission. Pascal Canfin, the lawmaker behind the measure, called the ban “a major step forward” in curbing speculation in the eurozone, though there are conditions in the bill under which the swaps would be allowed. The Alternative Investment Management Association has said such a ban “would affect the efficient functioning of global debt market and have far-reaching and substantial negative consequences.”
