Unlocking Liquidity for the U.S. Treasury Markets


Unlocking Liquidity for the U.S. Treasury Markets

Coalition Greenwich - US Treasury Trading Market Structure - Supporting Image

By MarketAxess | 22 November 2022


Advocating for all-to-all trading has always been the MarketAxess way, but lately, it seems we aren’t the only ones buzzing about the benefits. Earlier this month, the WSJ reported that top regulators—including the U.S. Treasury, Federal Reserve, Securities and Exchange Commission and Commodity Futures Trading Commission—are interested in supporting the growth of “all-to-all”’ trading for U.S. Treasurys. Last week, at the 2022 U.S. Treasury Market Conference, MarketAxess CEO Rick McVey was invited to join a panel discussion on “why all-to-all trading has not become more widespread in the Treasury market and the potential impact a broader adoption could have on Treasury market resilience. And last month, PIMCO, one of the world’s largest fixed-income managers, published a paper highlighting potential all-to-all benefits for the Treasury markets.

Exciting times to say the least, but we think the team at Greenwich said it best in their latest report, “There is not a one-size-fits-all approach. The buy side and its investment strategies are diverse, but if the corporate bond market were able to adopt all-to-all trading as part of its toolkit, then the much more liquid U.S. Treasury market should be able to get there even quicker.”

We could not agree more. Our view has always been that markets are most efficient and most resilient when they’re open to a broad range of participants – that’s why we launched Open Trading for corporate bonds back in 2013. We understand the power and potential of unlocking market liquidity.