Bloomberg: US SEC in talks with firms on becoming UST clearinghouses

  • Agency seeks greater trading resiliency in $27 trillion market
  • Daily trading in Treasuries, repos seen getting volume boost

The Securities and Exchange Commission (SEC) is in talks with firms seeking to become central clearinghouses for US Treasuries and derivatives trading under a new agency rule designed to fortify the world’s largest debt market.

“Several market participants have reached out to us and want to sort of enter the business,” said Haoxiang Zhu, director of the SEC’s Division of Trading and Markets, cited by Bloomberg. “Generally we welcome additional interest from clearinghouses engaging to get into this business. Competition is good for the market.”

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