SUERF Future Proofing the US Treasury Market 20240527

On 27 May 2024 around 120 international experts met for a SUERF BAFFI Bocconi High-level Policy Panel: “Expanding clearing in the US Treasury market: Future-Proofing the world’s safe asset?”

US Treasuries are very widely held by investors across the globe. They serve as a vital safe asset and provide the global risk-free rate. In March 2020, this market suffered a severe dislocation which was only solved by large-scale intervention by the Federal Reserve. The wide-ranging reforms of the US Treasury market, which have been launched in the aftermath of this unprecedented stress event have recently made material progress. A core element is an expansion of central clearing for cash and repo transactions. These reforms will substantially change the market structure of Treasury markets. They also further increase the systemic role of CCPs, which has recently been strongly illustrated both in the COVID as well as the energy stress. Against this background this webinar discussed the state of play and implications for Europe with a panel of senior academics, policymakers and practitioners.

Key questions:
• Reforms of US market structure: Clearing as a panacea?
• What will be the impact on US markets? Which other measure are necessary?
• CCPs (Central Counterparties): The next „too big to fail” entities?
• Resilience of European fixed income ecosystem: What can we learn from the US?
• What is the overall role of central banks? Are public sector backstops a permanent necessity?
• Which reforms could further help to enhance resilience (US vs EU)

Speakers and timeline:
00:00:13 – Welcome: Ernest Gnan, Secretary General, SUERF
00:00:43 – Introductory overview by Martin Scheicher, Adviser, SSM I ECB
00:12:00 – Panel introduction and moderation: Aino Bunge, Deputy Governor, Sveriges Riksbank
00:15:38 – Darrell Duffie, Professor, Stanford University
00:30:35 – Imene Rahmouni-Rousseau, Director General, Market Operations, ECB
00:47:27 – Klaus Loeber, Chair, CCP Supervisory Committee, ESMA
00:58:38 – Andreas Schrimpf, Head of Financial Markets, BIS
01:08:57 – Discussion and Q&A
01:33:23 – Concluding remarks and farewell: Aino Bunge, Ernest Gnan

Presentation slides: https://www.suerf.org/events/expandin...

© SUERF 2024. Views expressed are those of the speakers only and not necessarily of their affiliated institutions.
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