Monday, February 24, 2014
Treasury auctions. Today's 22 big banks which act as intermediaries between bidders and the US is down from 46 in 1988 even though the country's debt load is up seven-fold the past quarter-century. While the decline has been driven by consolidation in the financial industry, the introduction of web-based auction bidding is also increasing final investors' ability to circumvent primary dealers, the committee noted. Electronic bidding has also cut the average time it takes the government to announce auction results to about 2 minutes from 30, reducing bidders' exposure to market risks.