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If Treasuries Are Manipulated, Good Luck Finding Any Cops
by Matthew Leising
Bloomberg.com
The last time regulators took a hard look at how Wall Street trades Treasuries, a little company called Google Inc. was just starting out.
That was 1998, and the technological leaps since then — including ones that are now transforming bond markets — have left government overseers in the dust. In particular, executives from three of the biggest market-making firms say an electronic bait-and-switch tactic known as spoofing, which is already the focus of a manipulation allegation at a futures exchange, needs to be investigated in cash Treasuries.
Rules first enacted in 1986 that have gone virtually untouched for a decade and a half are allowing computerized firms to outmaneuver less-savvy rivals and, some executives assert, manipulate prices. They say a lack of cohesive regulation and technology to monitor high-frequency traders is making the world’s biggest government bond market more dangerous for everyone.
Continue Reading at Bloomberg.com…
Source: http://financialsurvivalnetwork.com/2014/12/if-treasuries-are-manipulated-good-luck-finding-any-cops/?utm_source=rss&utm_medium=rss&utm_campaign=if-treasuries-are-manipulated-good-luck-finding-any-cops
