Washington to Bond Traders: We’re Worried About Liquidity Too
Regulators and bankers are talking it out
This article is for subscribers only.
Wall Street bankers who’ve been warning that poor liquidity is endangering the $39 trillion U.S. bond market are gaining an audience with regulators.
The Financial Industry Regulatory Authority is meeting with some of the market’s biggest players over the next few weeks to discuss how they can make it easier to buy and sell bonds when sentiment sours. Liquidnet, which is planning the first dark pool for corporate bonds this year, gave a demonstration last week to U.S. Treasury Department officials who expressed concern with the structure of the bond market, said firm founder Seth Merrin.