In the Market: Small Treasury brokers seek reforms as ranks thin
Over the past decade, at least eight independent broker-dealers have been either bought by bigger firms or closed shop, a Reuters tally shows, taking out intermediation capacity from a market that needs more of it. At the same time, academic studies show the largest banks have come to hold more sway in some segments of the market, such as parts of repurchase agreements (repo) for short-term loans against Treasury and other securities.
James Tabacchi, CEO of South Street Securities and chair of a trade group of independent firms, blames market structure for squeezing out mid-market firms. His group has been lobbying regulators for reforms, arguing that firms such as his bring diversity and resilience to the market.
The full article is available at https://www.reuters.com/markets/us/market-small-treasury-brokers-seek-reforms-ranks-thin-2023-07-17/