The US securities regulator plans to bring high-speed traders in Treasury bonds under direct supervision, ushering in more transparency to one of the world’s most important financial markets.
In a unanimous vote, members of the Securities and Exchange Commission on Monday proposed guidance that would require the trading firms to register with the agency. The move would require the traders to be more transparent about their positions and daily trading activity.
Improving the resiliency of the $21tn Treasury market, regarded as the world’s deepest and most liquid, has been a priority for Gary Gensler, SEC chair, since his appointment last year. Treasury securities set borrowing costs for the US government and are the benchmark for trillions of dollars in other assets.