Federal Reserve’s Lorie Logan pushes for voluntary central clearing in open market operations

• Dallas Fed President Lorie Logan is advocating for the Federal Reserve to voluntarily adopt central clearing for its open market operations.
• This move is expected to reduce intermediary costs, enhance control over short-term interest rates, and improve the Fed's ability to inject liquidity during market stress.
• While an SEC mandate for broader central clearing is set for 2027, Logan's proposal suggests the Fed should proactively implement this for its own operations, potentially impacting dealers and banks.

Topics: Public debt, Jurisdictions, Banks bankingsystems, Tokenized us treasuries, Regulatory sandboxes pilots, Custody asset servicing

Tags: #lorielogan #federalreserve #dallasfed #openmarketoperations #centralclearing #treasurymarket #interestrates #liquidity #secmandate #sofr

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