As U.S. Probes $12.7 Trillion Treasury Market, Trader Talk Is a Good Place to Start
ByThe U.S. federal probe that ended last month with guilty pleas and $6 billion in fines from global banks began with an open secret — that currency traders there could talk to each other to coordinate trades.
Now, the Justice Department unit behind those prosecutions is turning its sights on the $12.7 trillion U.S. Treasury market, a world with some of its own open secrets.
Dozens of times a year before the Treasury holds an auction, salespeople at 22 primarydealers field billions of dollars in bids for government debt. Traders working at some of these financial institutions have the opportunity to learn specifics of those bids hours ahead of the auctions, according to several people familiar with these operations…
As U.S. Probes $12.7 Trillion Treasury Market, Trader Talk Is a Good Place to Start
