On Jan. 19 the Treasury Department issued a request for information (RFI) on Treasury market structure, including both cash and futures trading. The request for information is part of a broader effort by U.S. regulators to understand changes in the Treasury market over the past two decades, and in particular the rise of automated trading and the increasing role of principal trading firms as liquidity providers.
The request covers four main topics: structural changes in the Treasury market and their implications for market functioning, trading and risk management practices across the Treasury market, access to Treasury market data and public disclosure of Treasury market activity.
Treasury explained that the request for information is intended to help U.S. regulators develop recommendations for improvements in market policies, practices and conduct. The request builds on a joint staff report issued in July that was conducted by Treasury, the Federal Reserve, the SEC and the CFTC.
“The Treasury market remains the deepest, most liquid market in the world, a source of safety and liquidity, and a haven in times of turbulence,” said Antonio Weiss, counselor to the Treasury Secretary. “The RFI is an important step in the most comprehensive review of the Treasury market in decades and will further inform the ongoing interagency work to maintain the depth and resiliency of the U.S. Treasury market.”
