actually use them. and the market would need to include both dealers and ptfs. i ’ d be interested in hearing the panelists ’ views on this and whether there are things that regulators could do to encourage a cooperative, industry - wide approach. treasury repo markets are also undergoing structural changes, which brings me to the third area of consensus at the conference. the repo panel i moderated included an asset manager, a broker dealer and one of the triparty clearing banks. there was agreement on the panel that expanded repo clearing would be positive for the market. that said, there was also a consensus that the current private sector initiatives in this area face demanding regulatory requirements related to capital and liquidity. we are carefully considering these proposals and are open to solutions that would satisfy regulatory requirements while bringing the benefits of central clearing. i ’ d welcome panelists ’ views on proposals for expanded repo clearing as well. i look forward to the conversations today, and i hope we ’ ll keep having them. treasury markets are important to all of us. the financial market participants represented here have special reasons to care. as one of the panelists at the conference put it, we ’ ve built our entire prudential regulatory framework, indeed our entire financial framework, around the ability to quickly and efficiently transform treasury securities in to cash liquidity. these markets need to keep functioning at a high level, and we all have a stake in making sure that they do. bis central bankers ’ speeches

jerome h powell : roundtable on “ treasury markets and debt management : evolution of treasury market and its implications ” – opening remarks opening remarks by mr jerome h powell, member of the board of governors of the federal reserve system, at the 2015 roundtable on “ treasury markets and debt management : evolution of treasury market and its implications ”, new york city, 20 november 2015. * * * it ’ s been a month since the new york fed hosted a very successful conference on treasury market structure, and i ’ m eager to continue the conversation started there. i thought i ’ d start by discussing some of the main points i took from the conference. there were certainly different points of view on a variety of issues between broker dealers, proprietary trading firms ( ptfs ), end users and others, but hearing a range of views was exactly the dynamic we were hoping for. there was broad understanding that electronic and automated trading are here to stay. indeed, a wide range of firms are engaged in these trading practices today. participants on the ptf panel viewed their relative speed and efficiency as allowing them to provide tighter spreads and greater liquidity. one expressed the belief that his firm needed to be faster and more sophisticated because, unlike broker - dealers, they have no direct view of customer order flows. for their part, dealers noted that they provide a key service in helping their customers execute larger trades, and defended their internal matching of customer trades as a natural search for trading efficiencies. there were differing views on the significance of what happened in treasury markets on october 15, 2014. many attendees voiced concern, but a number also expressed the view that the market worked as it was supposed to, and even that nothing extraordinary occurred that day. although buy - side participants tended to believe that they were not directly affected given the short duration of the price swings that day, some noted that more frequent episodes of high volatility could lead them to demand larger risk premiums. for my part, i do realize that a single 12 - minute roundtrip episode may not mean that much in the end. but it isn ’ t satisfying to me to say that the market worked as it was intended to. the events of october 15 were unusual both in the size and speed of the moves and in the absence of a fundamental driver. the real question is whether there are dynamics at play here that are likely to produce more episodes of sudden, outsized volatility without any obvious cause. further episodes of this nature could