, would force much more of the trading in the $25 trillion Treasuries market, including a market for short-term financing called repurchase agreements , to central clearing. A central clearer acts as the buyer to every seller, and seller to every buyer.
The rule would come as other regulations in recent years have seen banks pull back as intermediaries from the Treasury market, causing some of the issues that regulators are trying to fix. The industry fears central clearing, if not done right, could undermine that goal: it will increase costs, which would risk more traders withdrawing.has reduced its position in the section of the repo market where the SEC wants banks to do more business, financial statements show.
The SEC declined to comment. SEC Chair Gary Gensler has previously said the rule-making process generally takes 12 to 24 months.Treasury markets underpin global finance, but the foundation is cracked. U.S. government debt has ballooned in recent years but buyers have dwindled. There is broad consensus on the need for Treasury market reform, including the benefits of central clearing -- even among the industry sources interviewed for this article. Most of them requested anonymity to speak candidly about the situation.
In the repo market, for example, where investors borrow cash for the short term against treasuries, most of the trading is done bilaterally between brokers and customers, like hedge funds. The SEC rule would force the banks to move that to central clearing.
Switzerland Neuesten Nachrichten, Switzerland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Frazzled Stock Investors Eye Frothy Treasury Market as Fed LoomsFinancial markets are bracing for what could be a momentous week, with a Federal Reserve meeting, U.S. employment data and earnings from technology heavyweight Apple Inc possibly setting the course for stocks and bonds the rest of the year. October has lived up to its...
Herkunft: NEWSMAX - 🏆 16. / 71 Weiterlesen »