Effectiveness of CDS regulation

: an insight into the Cyprus and Greek crisis

Abstract

This dissertation is realized in the context of understanding if recent measures taken by European authorities relative to the CDS market were effective. More specifically this paper study the bail-in inclusion on ISDA 2014 as a credit quality event and the ban of uncovered CDS. Due to CDS market rapidly growth, it becomes imperative that competent authorities take actions with the view to control this ascending market. Nevertheless there are no conclusive evidences that support the idea that the recent measures were the best solution to the problem, having in counterpart suspicious that such measures could exert the contrary effect. The analysed results precisely suggest that those measures ere not able to control the CDS spreads explosive behavior, showing that it requires new measure planning in order to obtain a more efficiente market control to stabilize the market.

Date of Award	21 Dec 2015
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Carlos Manuel Ferreira dos Santos (Supervisor)