How Do You Define Bond Liquidity? U.S. Treasury Wants to Know
- Information request likely precursor to regulatory action
- Questions also focus on role of high-frequency traders
This article is for subscribers only.
The U.S. Treasury Department wants to know if you’re worried about bond-market liquidity. Also, how you even define it.
The agency released a request for information Tuesday -- part of its first significant review of the market in almost two decades -- where questions range from the technical to the philosophical, and may be a key to where Treasury is most focused on making changes and enhancing oversight. It’s open to comments from anyone who wants to weigh in on issues like automated trading and the lack of a central source for transaction data.