Will auction changes bring more uncertainty? (changing the way the government's debt are sold)

Futures (Cedar Falls, Iowa), January, 1992 by Tanzy, Kathleen

Will auction changes bring more uncertainly?

Long before a prankster at Salomon Brothers Inc. dreamed of a billion-dollar joke bid, regulators were intent on tinkering with the U.S. government's system of selling debt.

The next six months will determine if any sweeping reforms will be forged via legislation in the wake of a 90-day, three-agency report on the U.S. government securities market.

In early December, it seemed many modifications the Treasury Department, Federal Reserve and Securities and Exchange Commission were likely to propose would be allowed under present authority. These changes involve safeguards, large bidder certification, automation, regulation and debt management. Other reforms would need congressional approval.

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