March 1, 2022

Securities Lending Transparency: Re-Opened Comment Period

Also on Friday, the Commission issued this 4-page release to reopen the comment period on proposed Exchange Act Rule 10c-1. That rule was proposed just before Thanksgiving last year. It wouldn’t directly impose obligations on issuers, but the info could be of interest. Here’s the original 184-page proposing release and the 2-page fact sheet. Here’s more detail:

Proposed Rule 10c-1 is designed to increase the transparency and efficiency of the securities lending market by requiring any person that loans a security on behalf of itself or another person to report the material terms of those securities lending transactions and related information regarding the securities the person has on loan and available to loan to a registered national securities association.

Although the original comment period just expired in early January, the Commission is formally re-opening it in light of the implications of proposed Rule 13f-2. The new comment period expires 30 days after the date the re-opening proposal is published in the Federal Register.

Liz Dunshee