Jeff Huther, the former director of the Office of Debt Management at the Treasury had battled for several years for a solution, getting as far as a White Paper produced in April 2006 suggesting stricter enforcement of delivery and penalties.
No need, responded the Bond Market Association. “The Association has worked with its members [bond traders and dealers] to address chronic fail issues with respect to risk, pricing and liquidity,” it asserted. “Indeed, the Association has focused its efforts on developing pre-emptive practices that would make it unlikely that a significant fails event would occur.
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