The fast and the furious: HFT in US Treasury markets
Dealers claim they are victims of predatory behaviour in US Treasury markets dominated by high-frequency traders
The interdealer US Treasury markets have long been a sanctuary for primary dealers – a safe place to lay off the risks of their client-facing activities among themselves. But an influx of high-frequency traders has changed all that. Non-banks armed with speedy algorithms and superior technology are now the dominant players on the main interbank platforms, Icap's BrokerTec and Nasdaq-owned eSpeed. Dealers claim they are being pushed out of what has always been one of their core markets.
"BrokerTe
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