G30 Report on U.S. Treasury Market Reform Recommendations

The document is a report published by the Group of Thirty (G30) that analyzes weaknesses in the U.S. Treasury market and proposes recommendations aimed at enhancing market resilience during periods of stress. It discusses the significant role of the U.S. Treasury market as a liquid securities market and highlights the challenges faced during recent turmoil, including the September 2019 repo market stress and the COVID-19 pandemic. The G30 Working Group, chaired by former Treasury Secretary Timothy F. Geithner, outlines ten key recommendations to improve market-making capacity. These recommendations address issues such as central bank liquidity support, central clearing of trades, prudential regulation of dealers, market transparency, and overall market regulation. The report emphasizes the need for reforms to ensure that the Treasury market can function effectively under stress and to diversify the market-making capacity among participants. It also discusses the implications of regulatory frameworks on market dynamics.