The fast and the furious: HFT in US Treasury markets

Dealers: we're 'sitting ducks' in Treasury market overrun by HFTs

risk-1015-lead-running-traders-wenshutterstock-206822650
Sources describe a dysfunctional market where speed is king and liquidity is illusory

The interdealer US Treasury markets have long been a sanctuary for primary dealers – a safe place to lay off the risks of their client-facing activities among themselves. But an influx of high-frequency traders has changed all that. Non-banks armed with speedy algorithms and superior technology are now the dominant players on the main interbank platforms, Icap's BrokerTec and Nasdaq-owned eSpeed. Dealers claim they are being pushed out of what has always been one of their core markets.

"BrokerTe

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: