Start-up UST trading venues face clearing hurdles
Gaps in central clearing are stifling the emergence of all-to-all trading venues for US Treasuries
Heavy-handed regulation is often blamed for stifling innovation. In the US Treasury market, the opposite may be true: the absence of a clearing mandate for US government securities may be hindering the emergence of new electronic trading venues that would allow buy-side firms to trade with a wider range of counterparties.
"The current clearing and settlement structure for US Treasuries remains a
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