The Inter-Agency Working Group on Treasury Market Surveillance (IAWG) has released a staff progress report detailing significant measures taken to enhance the resilience of the U.S. Treasury market. The IAWG comprises staff from the U.S. Department of the Treasury, the Board of Governors of the Federal Reserve System, the Federal Reserve Bank of New York, the U.S. Securities and Exchange Commission (SEC), and the U.S. Commodity Futures Trading Commission.
Key accomplishments over the past year include:
– The SEC’s adoption of rules to facilitate clearing additional Treasury securities transactions.
– The Treasury Department’s launch of a buyback program aimed at bolstering market liquidity and improving cash management capabilities.
– The SEC’s new rules requiring registration by market participants who act as dealers.
– The commencement of data dissemination on individual transactions in on-the-run nominal coupon Treasury securities.
– The finalization by Treasury’s Office of Financial Research (OFR) of a rule mandating reporting for non-centrally cleared bilateral repurchase agreements.
These actions build upon initiatives outlined in the IAWG’s 2023 Staff Progress Report, which summarized previous steps taken and discussed further policies under consideration. On September 26, 2024, joint member agencies will convene at the tenth annual U.S. Treasury Market Conference to discuss recent developments and policies aimed at improving market resilience.
Read the full report here.
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