15 As IAWG staff members continue to refine the TRACE data to assess market resilience more accurately in light of changes in structure and speed, it will be important to incorporate alternative measures of liquidity and transaction costs. Separately, the increased role of managed funds is also having an effect on the Treasury market.
TRACE data can help us keep up with that development as well. As in other asset classes, 3 p.m. has become an important liquidity point during the trading day for Treasury securities. There is a regular spike in trading activity around 3 p.m., as can be seen in figure 7, which depicts average trading volumes across five-minute intervals.