TRAction’s Post

The #SEC have approved the partially amended #FINRA Rule 6500, setting the #Securitieslending industry on a 12 month path to implementing a complex trade reporting regime for securities loans and associated lifecycle events on 2nd January 2026. There remain many unanswered questions, although at present, this rule would appear to have extensive #extraterritoriality for the lending activities of foreign participants in the US Securities Lending market. Kaizen will blog more extensively on this new #reporting regime in due course. #SFTR Many thanks also to International Securities Lending Association (ISLA) https://lnkd.in/evgQ_UEM

New Year, new reporting regime! US securities lending reporting under SEC 10c-1a (administered by FINRA as Rule 6500 SLATE reporting) has been approved by the U.S. Securities and Exchange Commission, with reporting due to commence in a year's time. See Jonathan's post below for more details or read our blog from last year for some background to the new regime: https://lnkd.in/epBMpXyE

U.S. Securities and Exchange Commission has approved FINRA Rule 6500, which specifies the technical requirements for reporting covered securities loans to the Securities Lending and Transparency Engine (SLATE). The rule implements SEC Rule 10c-1a, which requires timely and detailed reporting of securities lending transactions to a registered national securities association. The requirement for covered persons to report eligible transactions commences on January 2, 2026. Learn more about the SEC’s approval of FINRA Rule 6500 here: https://lnkd.in/eHJRg5GB Droit’s industry-leading technology ensures that transaction reporting is accurate, timely, and transparent. Contact us to learn how Droit can help your firm comply with new SEC and FINRA requirements. https://bit.ly/499SvgL #RegTech #RegulatoryCompliance #SecuritiesLending 

🌐 SEC extended the deadline to approve or disapprove FINRA’s Rule 6500 (SLATE) The securities lending industry is at a pivotal moment with FINRA's proposed Securities Lending and Transparency Engine (SLATE™), which aims to enhance market transparency through mandatory reporting and public loan data access. Today, the SEC extended the deadline to approve or disapprove FINRA’s Rule 6500 (SLATE) from November 4 to January 2, 2025. For full details, follow this link to the Notice. https://lnkd.in/eT6MWegT ISLA Americas and International Securities Lending Association (ISLA) EMEA, along with our Legal & Regulatory and Operations & Technology working groups, are closely monitoring these regulatory developments to ensure our members are fully informed and prepared for the changes ahead.   #ISLA #FINRA #SLATE #SecuritiesLending #Transparency #RegulatoryUpdates Fran Garritt #IndustryLeadership

US Securities Lending Trade Reporting: SEC 10c-1a Update Bob Currie offers an update on the SEC’s proposed 10c-1 rule and explores the potential implications for market participants as they prepare for the new US securities lending trade reporting requirement. #finreg #seclending https://hubs.li/Q02YYljR0

FINRA has issued a set of proposed amendments to Rule 6500 Series, which governs the Securities Lending and Transparency Engine (SLATE). These changes are designed to address feedback from market participants and to make the reporting process more manageable, while also expediting the implementation of the SLATE system. https://lnkd.in/eqdpjhrW

As of May 2024, the Financial Industry Regulatory Authority proposed a new series of rules in response to the SEC’s mandate to report securities lending transactions. Learn more about FINRA Rule 6500 series in the article below. #FINRA #SEC #FinanceNews #InvestmentServices

📢 This may be of interest! Robert Cook, FINRA President and CEO, has shared an insightful blog on the FINRA website regarding the implementation of the SEC’s securities lending reporting requirements under Rule 10c-1a: Read the full blog here. https://lnkd.in/eS7KeGqu Key Updates: The SEC has approved FINRA’s rules, and reporting is scheduled to begin on January 2, 2026. FINRA must now: 💡Publish a Regulatory Notice announcing the SEC’s approval. 💡Release technical specifications for the reporting system. 💡Build and test the reporting system. However, FINRA has requested an extension from the SEC, citing the following concerns: 👉Holiday Freeze Period: Launching a complex system at the start of the year is challenging due to IT freezes and personnel availability. 👉Omnibus vs. Sub-Allocation Reporting: Many agents suggest allowing reporting at the aggregated loan level to reduce complexity while meeting transparency goals. 👉Timing of Public Dissemination: Additional time is needed to ensure data accuracy and avoid unintended consequences before public release. 👉Operational and Technology Burden: The timeline for creating and testing the system presents significant challenges. 👉Interpretive and Technical Ambiguities: Clarifications are needed on certain reporting requirements to ensure consistent compliance. 👉Data Accuracy and Quality: Agents are concerned about overly granular reporting compromising data quality. 👉Compliance Costs: Updating systems and processes will likely increase financial burdens, particularly for smaller participants. FINRA plans to engage further with the SEC, trade associations, and market participants to address these concerns and ensure a successful implementation of Rule 10c-1a. This blog highlights the ongoing collaboration and dialogue needed to balance transparency objectives with operational realities. What are your thoughts on these challenges and proposals? Let’s discuss! 💬 #SecuritiesLending Fran Garritt International Securities Lending Association (ISLA) #Transparency #RegulatoryUpdates #FINRA

Read the latest on SEC Rule 10c-1a | Paving the path for transparent securities lending markets. Thanks to Michael Martinen, Yuliya Lyashchun from my KPMG US team and to Fran Garritt for authoring.

We are pleased to announce the release of our latest publication, SEC Rule 10c-1a | Paving the path for transparent securities lending markets, in collaboration with KPMG.   This publication is designed to provide our members with a high-level overview of the SEC’s Rule 10c-1a, highlighting its historical origin, purpose, and a summary of the Rule itself.   Additionally, we delve into the reporting requirements, analyze key similarities and differences between the Rule and the Securities Financing Transactions Regulation (#SFTR), examine the Rule’s impact to market participants, and provide high-level implementation guidelines, along with a section dedicated to frequented asked questions (FAQs) and suggested next steps for your implementation roadmap. 📄 Historical origin and purpose: A look back at the historical context that led to the development and eventual enactment of SEC Rule 10c, tracing back the industry developments, such as the GFC, that paved the way for the introduction of the Rule and set the stage for its key objectives: bolstering market transparency and regulatory oversight, as well as decreasing systemic risk globally. 📄 Summary of Rule 10c-1a: A concise yet comprehensive summary of the Rule to ensure a clear understanding of its provisions. This section is the cornerstone of our publication, designed to familiarize readers with the key aspects of the Rule. 📄 Comparison to SFTR: A detailed comparison between Rule 10c-1a and the EU and UK’s SFTR, highlighting the similarities and differences between these two regulatory frameworks. 📄 Impact to market participants: A deep dive into key operating complexities, financial implications and costs, as well as several unintended consequences, providing insight into how the Rule may affect operations and compliance strategies. 📄 High-level implementation considerations: An overview of critical implementation considerations, designed to offer a starting point for your firm’s transformation journey. 📄 Key next steps for your Firm’s consideration: Our macro-level suggestions designed to initiate a baseline dialogue amongst the key stakeholders at your firm. We believe this publication will serve as a valuable resource for all ISLA America’s members and wider industry stakeholders, equipping you with the knowledge and tools needed to navigate the evolving regulatory landscape with confidence. Download the paper here: https://lnkd.in/eu_ugTNt For any questions and further discussion on how Rule 10c-1 may affect your operations, or to find out more about ISLA Americas membership, please contact Fran.Garritt@ISLAAmericas.org. International Securities Lending Association (ISLA)