Mr. Callahan expects the fixed income ETF market to grow significantly and become very impactful to the overall market structure, noting increased use of ETFs for liquidity reasons.
Mr. Brown is more concerned with the speed at which liquidity can change rather than the absolute level of liquidity, pointing to risks of market contagion.
Mr. Olesky highlighted that increased trading volume from PTFs adds risk outside the primary-dealer system and stated a preference for a central clearinghouse for fixed income transactions.
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