SEC Finalizes Securities Lending Reporting Rule

November 01, 2023

The US Securities and Exchange Commission (SEC) has finalized a rule requiring certain parties to report their securities lending transactions to a registered national securities association (RNSA). The Financial Industry Regulatory Authority, Inc. (FINRA), currently the only RNSA, must now adopt rules implementing the infrastructure for such reporting and dissemination.

The SEC adopted the new rule, Rule 10c-1a, under the Securities Exchange Act of 1934 on October 13, 2023. Rule 10c-1a requires the reporting of securities loans to an RNSA, which in turn has to make publicly available certain information it receives within specified timeframes.