, Columnist
Make the Treasuries Market Safe at Any Speed
New oversight is needed in an era of high-frequency trading.
Don't let this happen to U.S. Treasuries.
Photographer: Chris Ratcliffe/BloombergThis article is for subscribers only.
One of the greatest responsibilities of U.S. financial regulators is to preserve confidence in the market for our federal debt, the world’s deepest and most liquid financial market.
There are $19.8 trillion dollars of federal debt outstanding today, of which the public holds $14.4 trillion. This debt finances the federal government, and it plays an irreplaceable role in financial markets -- facilitating the transmission of monetary policy, providing the world’s risk-free benchmark, helping businesses to manage their risks, and providing a reliable store of value to savers around the world, from sovereigns to retirees. In short, everyone you know relies on well-functioning Treasury markets.