New York

US GOVERNMENT regulators puzzling over what to do about frugalities in the increasingly electronic bond markets said on Tuesday reforms may be needed that emphasize stability over what one called the "never-ending competition for more speed". Following an unexplained so-called flash rally in the US Treasuries market on Oct 15, 2014 that saw volatile swings in bond prices, regulators have ramped up scrutiny of the changing structure of the nearly US$13 trillion Treasuries market.

At the same time, some investors and traders are concerned that such significant disruptions will become more frequent in the market for what is considered the world's safest securities.