The current timeline for mandatory clearing of US Treasuries and repo agreements is too aggressive and should be delayed, according to Bank of America’s global head of financing, futures and rates, Laura Chepucavage, who was speaking during a briefing with the Securities Industry and Financial Markets Association (SIFMA), reported Risk.
“We want the liquidity in the Treasury market to stay robust, and pushing out timelines definitely makes sense as the timelines are far too aggressive,” she said, Risk writes. “An extension would be beneficial for the industry.”