Rewiring of World’s Biggest Bond Market Will Transform Trading

After years of regulatory tinkering, Washington is now forcing through the most rigorous overhaul of the world’s biggest bond market in decades.

Securities and Exchange Commission Chair Gary Gensler, who once oversaw federal debt management at the US Treasury, has championed a move to require the vast majority of Treasuries trading to migrate to a central counterparty clearinghouse — an intermediary between buyers and sellers that assumes ultimate responsibility for the transaction.

The phased-in process culminates in mid-2026 with the inclusion of all repurchase agreement transactions — a key tool used by hedge funds in the popular so-called basis ...