In recent coverage of the Fed's repo operation, I was struck by this line:
It also indicated Wall Street is struggling to absorb record sales of Treasury debt to fund a swelling U.S. budget deficit. What’s more, many dealers have curtailed trading because of safeguards implemented after the 2008 crisis, making these markets more prone to volatility.
I do not find this so intuitive, because increasing volatility seems to be an unlikely policy objective in the context of other initiatives at the time (TARP et all.)
I hope I did not over-simplify the matter, and I would like to understand what is the regulation the article refers to and what is the logic behind the perceived "more prone to volatility?"