NEW YORK, Nov 28 (Reuters) - Shining a brighter light on the $14-trillion market for U.S. Treasuries is a priority for regulators because public transparency makes for smoother trading and a stronger platform, a top Federal Reserve official said on Tuesday.
The comments by New York Fed President William Dudley could suggest that regulators are leaning toward releasing in some way the vast pool of trading data from broker-dealers, including patterns or “flows,” they have collected since the summer. That in turn could harm banks’ secrecy and help electronic trading firms and funds looking for an information edge.
“A continuing priority will be increasing data transparency to all market participants and to the public in a manner that supports—and does not harm—market liquidity and integrity,” Dudley said in kicking off a conference co-hosted by the New York Fed and the U.S. Treasury. (Reporting by Jonathan Spicer Editing by Chizu Nomiyama)