Market participants and policymakers at a SIFMA Fixed Income Market Structure Seminar debated recent Treasury Department regulatory initiatives and greater access to market data.
SIFMA Executive Vice President Randy Snook discussed the recent Request for Information ("RFI") by the U.S. Treasury Department ("Treasury") regarding the evolution of the Treasury market structure. He explained that efforts to reduce systemic risk might disrupt the efficient allocation of capital in the markets. He said that regulators must have greater access to market data, but noted that SIFMA members do not believe that increased public reporting of Treasury transactions would have any net positive effect on market quality, and might in fact inhibit primary dealers' ability to hedge around Treasury market auctions.
Acting Treasury Assistant Secretary for the Financial Markets Daleep Singh summarized comments received in response to the RFI, most of which favored the collection of transaction data by the official sector but opposed making the data public. Mr. Singh explained that by implementing the "post-RFI roadmap," the Treasury will:
- develop a comprehensive plan to collect data on cash activity in the Treasury market from major market participants;
- define appropriate principles to guide decisions about whether to make this data publicly available;
- monitor progress made in the Treasury market toward broadening the use of centralized clearing and settlement services; and
- continue the ongoing dialogue with the SEC and other official sector members via the Interagency Working Group for Treasury Market Surveillance.
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