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SEC Entitlement Packet Hedge Fund Law Blog  Form

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Today, the conversation is around the Treasury bases trade, which we all love talking about. It's basically when hedge funds distort the prices between futures and the underlying treasury. Citadel founder Ken Griffin has a lot to say on it. Joining us now is Bloomberg Technology Basic. He was talking to the party, really came out against it, said, look, talk to the dealers, talk to banks, talk to those guys. Don't look at us. He's talking his book. On one hand, here you have Ken Griffin, you have the Citadel, the hedge fund and Citadel Securities, which is an intermediary in Treasury market. So they are very involved in the base trade from all angles, if you will, here. But, you know, the interesting thing he told the F.T., let's read exactly what he said. He said, the SEC is searching for a problem. And if regulators are really worried about the size of the base is trade, they could ask the banks to conduct stress tests to see if they have enough collateral from the counterparties. Wh

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