The US Securities and Exchange Commission adopted rule amendments designed to improve risk management in clearance and settlement and to facilitate additional central clearing for the US Treasury market.
"Today's rules are in many ways meant to address systemic risk in the Treasury markets," partners Ignacio Sandoval and Penny Christophorou said in an email to Law360. "However, there are concerns that these collective reforms may be too soon and too fast such that systemic risk may be reduced—not as a result of these reforms—but as a result of potentially less liquidity as market participants reassess their roles in the market and operational delays associated in getting these reforms implemented."