Fed’s Dudley Wants Clear View of Treasury Trading Market

Regulators need a clearer view of the trading that takes place in the U.S. Treasury market, the world’s deepest, in order to better understand looming risks and the sources of abrupt changes in prices, an influential financial supervisor said on Monday.

William Dudley, president of the Federal Reserve Bank of New York, which acts as the government’s eyes and ears on Wall Street, said risks remain after the 2014 “flash crash” in Treasuries and after this month’s plunge in the British pound – which happened “seemingly without a major catalyst,” he said.

Information is “not widely available” in Treasury and foreign exchange markets, Dudley said. “It is challenging for the official sector, market participants, and members of the public to effectively analyze these markets, understand the sources and risks of flash events, and evaluate how liquidity is changing.”

via Reuters

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza