A recent proposal from the Securities and Exchange Commission has sparked controversy among market participants, with some saying it could add more risk to the system, rather than reducing it. “For many years now, SEC commissioners and other leaders on both the Republican and the Democrat side have been calling for greater oversight of the Treasury market,” said Nick Losurdo, Financial Industry partner and former SEC commissioner counsel, while speaking with International Financial Law Review. “We're seeing a greater focus on risk management and greater requirements in terms of trading in the space to be conducted through regulated paths.” But the proposed changes aren’t just tweaks to existing requirements or bolt-on new requirements – they are drastic overhauls of the processes and mechanics currently in place, Losurdo explained. Under the new rules, clearing agencies would also need to calculate, collect and hold margin for house and customer transactions separately.