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MNI PODCAST: FedSpeak - Duffie On Expanded Treasury Clearing

Federal Reserve

EXECUTIVE SUMMARY

  • Stanford Graduate School of Business professor Darrell Duffie dubs the SEC's expansion of central clearing in the U.S. Treasury market a 'transformative' rule that will reduce systemic risk and boost market liquidity.
  • The rule passed last week could be a gateway to some all-to-all trade, which will further improve market liquidity and competitiveness in the market in the long run.
  • Duffie, who has worked closely with the New York Fed on Treasury market resilience, says he would have preferred a larger set of trades be included in the cash securities market.
Listen to the full podcast here.
MNI Washington Bureau | +1 202-371-2121 | jean.yung@marketnews.com
MNI Washington Bureau | +1 202-371-2121 | jean.yung@marketnews.com

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