FINRA Rule 6500 Series gets approved following amendments
06 January 2025 US
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The Financial Industry Regulatory Authority’s (FINRA’s) proposed rule change to adopt Rule 6500 Series, Securities Lending and Transparency Engine (SLATE), has now been approved.
On 2 January, the US Securities and Exchange Commission (SEC) released an order approving the proposed rule change, as modified by Partial Amendment No.1.
As described in the Notice and in Partial Amendment No.1, FINRA stated that it proposed to adopt the new rule to establish reporting requirements for covered securities loans.
It would also provide for the dissemination of individual and aggregate covered securities loan information and loan rate statistics.
These proposed rules would define key terms for the reporting of covered securities loans and specify the reporting requirements with respect to both initial covered securities loans and loan modifications.
FINRA also separately filed a proposed rule change to establish covered securities loan reporting fees and securities loan data products and associated fees.
The implementation date of the reporting requirements for the proposed FINRA rules will take effect on 2 January 2026, while dissemination requirements will come in on 2 April 2026.
Rule 6500 Series is designed to improve transparency and efficiency in the securities lending market, consistent with Section 15(A)(b)(6) of the Exchange Act, Rule 10c-1a, and Section 984 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
According to FINRA, the proposed rule change would do so by facilitating the collection of specified securities loan information from covered persons and reporting agents, both of which may include non-FINRA members, and providing access to such information to market participants, the public, and regulators.
On 2 January, the US Securities and Exchange Commission (SEC) released an order approving the proposed rule change, as modified by Partial Amendment No.1.
As described in the Notice and in Partial Amendment No.1, FINRA stated that it proposed to adopt the new rule to establish reporting requirements for covered securities loans.
It would also provide for the dissemination of individual and aggregate covered securities loan information and loan rate statistics.
These proposed rules would define key terms for the reporting of covered securities loans and specify the reporting requirements with respect to both initial covered securities loans and loan modifications.
FINRA also separately filed a proposed rule change to establish covered securities loan reporting fees and securities loan data products and associated fees.
The implementation date of the reporting requirements for the proposed FINRA rules will take effect on 2 January 2026, while dissemination requirements will come in on 2 April 2026.
Rule 6500 Series is designed to improve transparency and efficiency in the securities lending market, consistent with Section 15(A)(b)(6) of the Exchange Act, Rule 10c-1a, and Section 984 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
According to FINRA, the proposed rule change would do so by facilitating the collection of specified securities loan information from covered persons and reporting agents, both of which may include non-FINRA members, and providing access to such information to market participants, the public, and regulators.
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