Regulation of Treasury Market Is a Five-Alarm Fire: Yesha Yadav

The video discusses the volatility in the treasury market, highlighting the lack of regulation and its consequences. It explores the impact of automation and high-frequency trading, which have increased market risks. The speaker suggests regulatory reforms, including better coordination among regulators and improved reporting, to address these challenges.

What is one of the main issues with the current regulation of the treasury market?

• It focuses too much on technology.

• It is too strict and limits market growth.

• It lacks a primary coordinating regulator.

• It is only applicable to international markets.

How has the treasury market changed over the last decade?

• It has become more automated and dominated by high-frequency trading.

• It has seen a decrease in high-frequency trading.

• It has become less automated.

• It has become more regulated.

What event highlighted the risks in the US Treasury market?

• The 2014 Flash Rally

• The 2008 Financial Crisis

• The 2020 Pandemic

• The 2016 Brexit Vote

What is a significant structural issue in the treasury market?

• Excessive liquidity

• Too many coordinating regulators

• Lack of liquidity and disappearing liquidity

• Over-reporting of trades

What is one proposed reform to tackle liquidity issues in the treasury market?

• Introducing affirmative market-making obligations

• Reducing market automation

• Decreasing trade reporting requirements

• Increasing the number of regulators

Why is better reporting in the treasury market necessary?

• To reduce the number of trades

• To fill significant systemic gaps and improve transparency

• To increase market volatility

• To ensure all trades are taxed

What role does the Financial Stability Oversight Council (FSOC) play in the proposed reforms?

• It should focus solely on international markets.

• It should be abolished to reduce bureaucracy.

• It should increase the number of trades allowed.

• It should take a leading role in coordinating treasury market regulation.