US Treasuries’ biggest clearing house is considering the idea of enabling to high frequency trading companies to gain access to it, as non-banks which depend on speed and technology assume a greater role in the US government bond market.
Majority of Fixed Income Clearing Corporation members are huge banks which facilitate dealings between one another on electronic platforms, including ICAP Plc’s BrokerTec. Trades are then transmitted to the clearing house to lower the odds of not completing such orders.
With high frequency trading taking the lead, dealers have reduced their roles on these venues. Trades between non-FICC members are processed without clearing it, and the Treasury has expressed their concerns on whether such deals are subject to same requirements.
The material has been provided by InstaForex Company – www.instaforex.com