Reporting: Castle Securities shelves plan to become a primary dealer in US Treasuries

Castle Securities quietly shelved its plan to become a primary dealer in U.S. Treasuries. For nearly a decade, the company's executives have believed that joining this prestigious club on Wall Street would bring them closer to their goal of becoming a dominant force in U.S. Treasury trading. However, sources revealed that as Castle Securities solidifies its position as a key market maker in the U.S. Treasury market, the company believes it is unnecessary to join the ranks of primary dealers who deal directly with the Federal Reserve. "Castle Securities is one of the largest liquidity providers for U.S. Treasury institutional investors," the company stated in an email. "As the market continues to democratize and evolve, including a shift towards central clearing, clients are less concerned about the identity of primary dealers when seeking optimal liquidity." (Bloomberg)