SEC Finalizes Rule Requiring Securities Loan Reporting

October 31, 2023

On October 13, the Securities and Exchange Commission adopted new rule 10c-1a, which establishes broad reporting requirements of the terms of securities loans to the Financial Industry Regulatory Authority for public dissemination.

Aimed at increasing transparency in the securities lending market, the Rule will significantly increase compliance obligations in the securities lending industry, and many market participants will likely require extensive operational upgrades to prepare for compliance. Certain details of reporting obligations will be the subject of FINRA rulemaking, and participants should be prepared to review and provide comment on what is proposed.

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