Net losers? Benefits of clearing US Treasuries are cloudy

Practical obstacles and questionable netting benefits muddy the path to a clearing mandate, argues economist

Foggy road

Does the safest asset in the world need to be made safer? That is the question regulators have set themselves as they consider reforming the US Treasury market, in the wake of unprecedented volatility witnessed a year ago amid the coronavirus crisis – a move that could result in a shift to mandatory clearing.

The off and on debate over US Treasury clearing took on fresh urgency in March 2020, when panic selling from funds desperate to raise cash as markets crashed saw dealers struggle to

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