RMA: Trade reporting for securities lending will come into fruition
13 October 2022 RMA Conference 2022
Image: Shutterstock
The regulatory environment continues to evolve with the need to constantly assess the impact of the current regulatory landscape. A group of panellists discussed the upcoming SEC actions relevant for banks.
On 18 November 2021, the SEC requested comment on a proposed Rule 10c-1 that implements Section 984(b) of the Dodd-Frank Act.
The proposed rule would require lenders of securities to provide identifying data and material negotiated terms of securities lending transactions to a registered national securities association.
One panellist indicated that some form of trade reporting for securities lending is going to come to fruition. Questions will form around how much the regulators can tailor that in a way that allows firms to continue to do their business.
Agent lenders will play a critical role in this reporting environment that has been proposed, according to the panellist.
It is anticipated that the final rule may be published in April 2023, according to the SEC’s regulatory agenda. The key outstanding issues that have been raised by the Risk Management Association (RMA), and consistently with all of the trade associations, shows how well they coalesce together.
The panellist continued to say that scope, liability, responsibility and pricing will impact every person in the chain of stock lending.
On 18 November 2021, the SEC requested comment on a proposed Rule 10c-1 that implements Section 984(b) of the Dodd-Frank Act.
The proposed rule would require lenders of securities to provide identifying data and material negotiated terms of securities lending transactions to a registered national securities association.
One panellist indicated that some form of trade reporting for securities lending is going to come to fruition. Questions will form around how much the regulators can tailor that in a way that allows firms to continue to do their business.
Agent lenders will play a critical role in this reporting environment that has been proposed, according to the panellist.
It is anticipated that the final rule may be published in April 2023, according to the SEC’s regulatory agenda. The key outstanding issues that have been raised by the Risk Management Association (RMA), and consistently with all of the trade associations, shows how well they coalesce together.
The panellist continued to say that scope, liability, responsibility and pricing will impact every person in the chain of stock lending.
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RMA: Committees look to revise best practices and discover the equal balance
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