MNI BRIEF:US Regulators' Report Offers Treasury Reform Options

A U.S. Treasury Department-led regulatory body Monday released a report looking at reform options for the Treasury market, including modifications to the supplementary leverage ratio and expanded central clearing.

The report by the Inter-Agency Working Group on Treasury Market Surveillance analyzed specific policy areas in which steps could be taken to strengthen the market's resilience after market events in 2014, September 2019 and March 2020, but the staff progress report does not finalize policy decisions. The report sets the stage for the New York Fed's Treasury market conference November 17, government officials said on a call with reporters.

Regulators continue to consider steps that could enhance the efficiency, flexibility, and resilience of intermediation in the Treasury cash and repo markets, particularly during times of stress, the report said, noting greater reliance on dealers amidst increased U.S. debt.