PTFs call for reform before Treasuries clearing mandate
Non-banks warn all-to-all trading relies on requiring dealers to accept ‘done away’ trades
Principal trading firms (PTFs) warn they will be forced to exit US Treasury markets if a Securities and Exchange Commission (SEC) clearing mandate is imposed before market structure barriers to non-bank clearing are resolved.
“You can’t have a functional clearing mandate that includes indirect members in any way, shape, or form, if those indirect members don’t have access to clearing for all transactions that are subject to the mandate,” says Graham Harper, head of public policy at trading firm
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