In a letter filed with the Securities and Exchange Commission, the FIA Principal Traders Group (FIA PTG) supported FINRA’s US Treasury trade dissemination proposal. FIA PTG strongly supports efforts to increase transparency for market participants, so while FIA PTG believes there should be real-time public reporting for all Treasury transactions, it appreciates this as a first step to achieving that goal. FIA PTG also raised concerns with two Treasury market structure proposals currently pending at the SEC – the clearing and dealer proposals.
“The magnitude of both proposals, along with the lack of in-depth and comprehensive economic impact analysis, especially if implemented too quickly or without careful consideration of their interconnectedness, could dramatically impact the liquidity in Treasuries at a time when the size of the market and need for liquidity has never been greater,” FIA PTG said.
In conclusion, FIA PTG urged the SEC to approve this proposal and added that they continue to advocate for shortening the trade reporting windows, increasing transparency through real-time public transaction reporting of more instruments, and carefully considering the impact on liquidity of the Treasury market structure proposals pending before the Commission.
Read the letter in full here.
