CFTC approves Treasurys collateral rule

11/17/2013 | Bloomberg

The Commodity Futures Trading Commission adopted a rule Friday requiring that Treasurys used for collateral in swaps and futures transactions be backed up so they can be instantly converted into cash. Market participants say the rule is unnecessary because Treasurys are already quite liquid and because the rule will increase the cost of doing business. The CFTC is concerned about that liquidity in the event of another financial crisis.

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