PTFs clash with banks over ‘done-away’ US Treasury clearing
Trading firms losing patience with banks’ reluctance to unbundle trading and execution
The debate over ‘done-away’ clearing is driving a wedge between principal trading firms (PTFs) and the banks that clear their US Treasury repo trades.
Risk.net reported last month that repo desks were “undecided” about whether to back a done-away model proposed by CME Group, which has filed an application with the Securities and Exchange Commission (SEC) to clear US Treasury cash and repo transactions.
Some PTFs have responded by threatening to establish direct connections with central
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