Federal Reserve Logan: Voluntary central clearing will help the Federal Reserve's open market operations.

Lorie Logan, President of the Dallas Federal Reserve, stated that conducting open market operations through a voluntary central clearing mechanism could bring benefits to the financial system. At a conference on market liquidity held by the New York Federal Reserve, Logan said that if the Federal Open Market Committee were to conduct open market operations through a central clearing mechanism on a voluntary basis, it would make its open market operations more efficient, effective, and help strengthen the overall stability of the US financial markets. Logan also stated that the level of leverage in the market needs to be carefully managed. "Maintaining strong and efficient financial markets requires market participants and official authorities to strike a proper balance between the benefits and risks of leverage use, as well as the interaction between leverage and market liquidity."