This Boring Service Is Suddenly a Big Concern for Treasurys

Written By Ellie Ohiso

Bank of New York will soon be the only bank left settling trades

J.P. Morgan Chase JPM -0.95%decrease; red down pointing triangle & Co.’s retreat from a mundane but crucial settlement role in the $13 trillion U.S. Treasury market poses a fresh challenge for regulators seeking to bolster the market’s capacity to withstand shocks.

The New York bank’s decision, announced July 21 and due to be complete next year, leaves rival Bank of New York Mellon Corp. BK 0.14%increase; green up pointing triangle as the lone firm handling the settlement of U.S. government debt for big bond brokers.

Ellie Ohiso https://www.ohiso.com/
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