“Dealer-to-customer” trading consists of direct transactions between broker-dealers and end-investors, and trading activity tends to be dispersed across both the most recently issued securities, known as “onthe-run” issues, and seasoned securities, known as “off-the-run” issues. The outright purchases of Treasury securities that the Desk conducts to implement monetary policy would fall into the dealer-to-customer category. Much of the trading between dealers, on the other hand, takes place on platforms that provide opportunities for market makers to trade anonymously with each other, with a broker sitting in the middle. Activity taking place over these platforms is often referred to as the “interdealer” market, since dealers have been its traditional participants. The vast majority of trading in the interdealer market has also tended to concentrate in on-the-run issues, given – and likely contributing to – their superior liquidity. This liquidity advantage is reflected in the tendency for on-the-run securities to trade at a slightly lower yield than might be predicted by a theoretical yield curve – a concept often referred to as the “on-the-run premium.”  3  At each Treasury auction, primary dealers are currently required to submit, at a minimum, their equally weighted share of the auction’s total offering size to ensure coverage. This is known as the “pro rata requirement.” In the past, dealers were required to account for 1 percent of secondary trading, but this requirement no longer exists. 4  The level of net marketable debt issuance is also affected by the Treasury’s need to borrow for student loans and other credit programs.

Denis Beau: The perils and potential of digital currencies Introductory remarks (virtual) by Mr Denis Beau, First Deputy Governor of the Bank of France, for the panel discussion on "The perils and potential of digital currencies", at the RAID (Regulation, Artificial Intelligence, Internet & Data) Digital 2023 on "Bridging Parallel Lines", 3 May 2023. *** In order to set the scene, let me: Put CBDC and stablecoins discussions and developments into the broader perspective of the transformation underway of financial services and of the financial sector. Highlight the regulatory and supervisory issues they raise from a central banker perspective, from the perspective of an institution in charge of ensuring monetary and financial stability. To do this, I would like to make three points: First, CBDC and stablecoins are the prominent and most publicized output of the 3 major disruptions of finance that digital technologies are bringing about, namely: The arrival of new players, big techs and fintechs, which to date, have been subject to little or no regulation. The emergence of new forms of investment and settlement assets in tokenized form, usually referred to as crypto-assets. Bitcoin is emblematic of a first generation of highly volatile cryptos, whose use remains essentially speculative. The second generation, stablecoins, aims to provide a broader range of services possibly with a global reach, with the support of mechanisms to stabilize their value against sovereign currencies. The emergence of decentralized market infrastructures, based on DLT and blockchains in particular.