MW: Treasury seeks large position reports on two securities
By Greg Robb
WASHINGTON (MarketWatch) -- The Treasury Department said Friday it has asked large holders of two Treasury securities to report their holdings by next Friday. The spot-check by the government is rare. It shows a high level of concern about the large degree of failed trades. In the past, the spot-check has also been used to uncover improper trading. A failed trade is when a broker sells a Treasury to a customer and then does not deliver the security on the trade date. The practice hampers market conditions by making trading more expensive, Treasury officials said. Entities with $2 billion or more of the two securities must report their positions to the Federal Reserve Bank of New York by next Friday. One security is a two-year note that matures on Sept. 30, 2010 and the other is a five-year note that matures on September 30, 2013.
