ARTICLE
22 October 2015

U.S. Regulators Considering Bond Market Reforms

KL
Herbert Smith Freehills Kramer LLP

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Financial regulators say that the increasingly electronic bond market may require reforms that emphasize stability over speed.
United States Finance and Banking

Financial regulators say that the increasingly electronic bond market may require reforms that emphasize stability over speed. While regulators increased scrutiny of the nearly $13-trillion Treasuries market following an unexplained flash rally in U.S. Treasuries on Oct. 15, 2014, some investors and traders also worry that the rise of high-frequency trading and algorithmic strategies could make such disruptions more common and hurt the securities' reputation for safety. The Treasury says its review of the market is in its early stages. Meanwhile, SEC Chair Mary Jo White suggested that closer oversight of algorithmic traders and firms, as well as rules requiring greater transparency for non-exchange trading systems, could be part of the solution.

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