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In The Media

SEC set to label hedge funds trading US Treasuries as ‘dealers’

by Larry Chiang on February 6, 2024

 
 
Larry Chiang, tips 650-283-8008
⁦‪@LarryChiang‬⁩
>>#RMRMRE #PRPRPI

SEC set to label hedge funds trading USA treasuries as ‘dealers’

“You get Fed balance sheet access…you get Fed balance sheet access…EVERYONE gets Fed balance sheet access!”

q/t ⁦‪@ces921‬⁩ #LukeGrommen pic.twitter.com/AFuw7kiqFv

 
2/6/24, 12:36 PM
 
 
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Luke Gromen
⁦‪@LukeGromen‬⁩
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*SEC SET TO LABEL HEDGE FUNDS TRADING US TREASURIES AS DEALERS

“You get Fed balance sheet access…you get Fed balance sheet access…EVERYONE gets Fed balance sheet access!” 

via ⁦‪@ces921‬⁩ pic.twitter.com/Q91vpv94e8

 
2/6/24, 9:09 AM
 
 

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It means hedge funds will not have to pro-cyclically de-lever highly-levered UST relative value trades when realized UST vol exceeds acceptable risk management thresholds.

WordPress’d
 
 
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Lawrence Lepard, “fix the money, fix the world”
⁦‪@LawrenceLepard‬⁩
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⁦‪@EveryManPrepper‬⁩ ⁦‪@LukeGromen‬⁩ ⁦‪@ces921‬⁩ I believe (Luke check me on this) that primary dealers have accounts at the Fed and probably swap lines which aid them in purchasing treasuries. Giving the same to hedge funds will create more treasury bill demand.
 
2/6/24, 12:18 PM
 
 

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Luke Gromen
⁦‪@LukeGromen‬⁩
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⁦‪@LawrenceLepard‬⁩ ⁦‪@EveryManPrepper‬⁩ ⁦‪@ces921‬⁩ i dont know all the details on the mechanics fr the dealer/Fed side.

I am just watching fr the govt issuance side, & fr the demand side, & this seems like it could help play a role as a stopgap

 
2/6/24, 12:21 PM
 
 
 from my personal iPhone, 650-283-8008, that Steve Jobs texted me on

https://www.youtube.com/watch?v=ejeIz4EhoJ0


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