Fed’s Dudley Wants Clear View of Treasury Trading Market

October 24, 2016 Share Print 0

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

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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 has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. 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.