New US Treasury market regulations still have validity, ten years after the market’s infamous ‘flash jump’, as its need for resilience reflects multiple challenges and changes, observed participants at the Fixed Income Leaders’ Summit in Boston on Friday 14 June.
However, these new rules do also raise questions for buy-side traders. Bhas Nalabothula, head of US institutional rates at Tradeweb said “We are definitely seeing [dealer-to-dealer and dealer-to-client] markets intersecting, especially around non-banking liquidity providers being such a key and critical portion of the Treasury market. They’ve always been in the dealer-to-dealer system in the landscape. They are now more focused on building out franchises that are directly customer facing.”
Although new clearing rules, slated for cash bond trades in…
