1.0Liberty Street Economicshttps://libertystreeteconomics.newyorkfed.orgblog authorhttps://libertystreeteconomics.newyorkfed.org/author/blog-author/Do You Know How Your Treasury Trades Are Cleared and Settled? - Liberty Street Economicsrich600338<blockquote class="wp-embedded-content" data-secret="G4Kwjb6GxI"><a href="https://libertystreeteconomics.newyorkfed.org/2018/09/do-you-know-how-your-treasury-trades-are-cleared-and-settled/">Do You Know How Your Treasury Trades Are Cleared and Settled?</a></blockquote><iframe sandbox="allow-scripts" security="restricted" src="https://libertystreeteconomics.newyorkfed.org/2018/09/do-you-know-how-your-treasury-trades-are-cleared-and-settled/embed/#?secret=G4Kwjb6GxI" width="600" height="338" title="“Do You Know How Your Treasury Trades Are Cleared and Settled?” — Liberty Street Economics" data-secret="G4Kwjb6GxI" frameborder="0" marginwidth="0" marginheight="0" scrolling="no" class="wp-embedded-content"></iframe><script>
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https://libertystreeteconomics.newyorkfed.org/wp-content/uploads/sites/2/2018/09/6a01348793456c970c022ad3b07c7b200b-500wi.jpg500313The Treasury Market Practices Group (TMPG) recently released a consultative white paper on clearing and settlement processes for secondary market trades of U.S. Treasury securities. The paper describes in detail the many ways Treasury trades are cleared and settledinformation that may not be readily available to all market participantsand identifies potential risk and resiliency issues. The work is designed to facilitate discussion as to whether current practices have room for improvement. In this post, we summarize the current state of clearing and settlement for secondary market Treasury trades and highlight some of the risks described in the white paper.