Economics
Don’t Spoof $12.6 Trillion Treasury Market, Fed Group Says
The Marriner S. Eccles Federal Reserve building in Washington, D.C.
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
Wall Street executives have a recommendation for U.S. Treasury traders: Don’t manipulate the $12.6 trillion market.
The Treasury Market Practices Group, an advisory committee backed by the Federal Reserve Bank of New York, is recommending investors, brokerages and markets ensure they’re actively working to prevent manipulative strategies in U.S. Treasuries such as spoofing, according to a new paper. The group updated its guidelines with several references to upholding market integrity and included new language aimed at the computerized markets where Treasuries are increasingly bought and sold.