"SEC Rule Sends Shockwaves Through Treasury Market"
The U.S. Securities and Exchange Commission (SEC) is expected to soon finalize a rule aimed at regulating debt-fueled bets by hedge funds in the Treasury market and strengthening financial stability. The rule would require more trading in the $25 trillion Treasuries market, including repurchase agreements, to be centrally cleared. However, the details of the rule, such as the implementation timeline and whether it will be phased in, remain unclear. Market participants are concerned about the potential impact on the industry, including increased costs and the possibility of traders withdrawing. The rule comes as banks have already pulled back from the Treasury market, and its effects on the industry are not fully understood.