EU gives specs a week to get out of CDS

The EU will discuss speculation in the credit default swap market on March 16, a source tells Reuters.

In essence, this gives market participants a bit over a week to get the heck out of dodge. The anti-CDS, anti-hedge fund rhetoric has been heating up for the last several weeks and in this environment when government is not afraid to regulate, traders are heading for the exits rather than spoiling for a fight.

We’ve heard anecdotal reports that traders are covering shorts in Greek bonds and liquidating CDS positions over the last week but selling EUR/USD on rallies to retain some anti-Greek exposure…