SEC postpones 10c-1a SLATE approval
07 August 2024 US
Image: lkeskinen/stock.adobe.com
The Securities and Exchange Commission (SEC) has postponed its approval of the Financial Industry Regulatory Authority’s (FINRA’s) Rule 6500 Series proposal.
The proposed rule refers to the Securities Lending and Transparency Engine (SLATE), to require reporting of securities loans, and to provide for the public dissemination of loan information.
SLATE is a new facility that allows for covered securities loan transaction reporting by ‘covered persons’ and transparency of covered securities transactions in accordance with SEC Rule 10c-1a, and the FINRA Rule 6500 Series.
It 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.
After previously extending the time period to reach its decision, the SEC has now filed an order to institute proceedings to determine whether to approve or disapprove a proposed rule to adopt the FINRA Rule 6500 Series SLATE.
The SEC has until 5 October to make a decision on the proposed Rule 6500. The Commission has reopened the comment period window for another 21 days following the order’s publication in the Federal Register.
Commenting on the decision, a representative of EquiLend says: “While we understand the need for a thorough review by the SEC, we also recognise that a delay in this decision affects the industry participants and their ability to prepare for the new rule’s implementation.
“Throughout these past few months, EquiLend has been actively participating in industry dialogues and closely monitoring all developments related to the 10c-1a SLATE proposal.
“Additionally, despite lacking final SEC approval, and in anticipation of the eventual rollout of Rule 10c-1a, we have been continuing our development efforts, to ensure that once the final regulation is approved, we will be in a good position to launch our product offering and begin client testing and integration.”
The proposed rule refers to the Securities Lending and Transparency Engine (SLATE), to require reporting of securities loans, and to provide for the public dissemination of loan information.
SLATE is a new facility that allows for covered securities loan transaction reporting by ‘covered persons’ and transparency of covered securities transactions in accordance with SEC Rule 10c-1a, and the FINRA Rule 6500 Series.
It 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.
After previously extending the time period to reach its decision, the SEC has now filed an order to institute proceedings to determine whether to approve or disapprove a proposed rule to adopt the FINRA Rule 6500 Series SLATE.
The SEC has until 5 October to make a decision on the proposed Rule 6500. The Commission has reopened the comment period window for another 21 days following the order’s publication in the Federal Register.
Commenting on the decision, a representative of EquiLend says: “While we understand the need for a thorough review by the SEC, we also recognise that a delay in this decision affects the industry participants and their ability to prepare for the new rule’s implementation.
“Throughout these past few months, EquiLend has been actively participating in industry dialogues and closely monitoring all developments related to the 10c-1a SLATE proposal.
“Additionally, despite lacking final SEC approval, and in anticipation of the eventual rollout of Rule 10c-1a, we have been continuing our development efforts, to ensure that once the final regulation is approved, we will be in a good position to launch our product offering and begin client testing and integration.”
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
