U.S. regulators moved closer to proposing fresh reforms to the market for Treasury securities as they continue to study the disruptions of March 2020 that were triggered by the onset of the COVID-19 pandemic, Bloomberg News reported. A progress report released yesterday by a panel of staff from the Treasury Department, Federal Reserve and other top regulators identified five areas of study. It showed continued interest in expanding central clearing, improving transparency around dealing activity and enhancing trading-venue oversight, among other themes. The report was prepared by the Inter-Agency Working Group for Treasury Market Surveillance, which gave no timeline for any eventual recommendations. The Fed in July implemented the most important response since the March 2020 meltdown when it made permanent its standing repurchase facility -- a mechanism for providing short-term financing to financial institutions through repo agreements. The IAWG report continued to ponder expanded eligibility for the domestic version of that program, following some adjustments made by the New York Fed in August.
