Key Takeaways
- On July 28, 2025, the SEC extended compliance deadlines under Rule 10c-1a to September 28, 2026, for reporting and March 29, 2027, for data dissemination.
- Originally adopted by the SEC on October 13, 2023, Rule 10c-1a is intended to enhance transparency by requiring "covered persons" to report securities lending data.
- These extensions aim to help ensure accurate reporting, supporting market stability, fair pricing and investor protection.
On July 28, 2025, the SEC issued an order granting temporary exemptive relief from certain compliance dates under Rule 10c-1a under the Securities Exchange Act of 1934.
As background, the SEC adopted Rule 10c-1a on October 13, 2023, to enhance transparency in the securities lending market. The rule requires certain "covered persons" who agree to a "covered securities loan" on behalf of itself or another person to report detailed information about securities loans to a registered national securities association (RNSA), which will make the data publicly available. Reporting obligations depend on the structure of the securities lending program, with intermediaries or lenders, including any person who agrees to a "covered securities loan" when an intermediary is not used, responsible for compliance. For most registered fund lending programs, reporting will be handled by the fund's lending agent. The rule aims to provide regulators with better oversight and market participants with timely access to pricing and transaction details, improving market efficiency and investor protection.
FINRA, the sole RNSA, requested extensions due to challenges in building the necessary technology infrastructure, launching its Securities Lending and Transparency Engine and ensuring accurate reporting, among other implementation challenges. The reporting deadline was extended from January 2, 2026 to September 28, 2026, and the dissemination deadline from April 2, 2026 to March 29, 2027. The SEC determined that the extensions are in the public's interest and consistent with investor protection, because the extensions allow time to address potential inaccuracies and inconsistencies in reporting. The SEC noted that the availability of accurate securities loan data that will be reported under the rule is expected to enhance transparency, improve market stability and protect investors from unfair pricing and regulatory noncompliance. The SEC also stated that while the delay postpones benefits under the rule, it aims to facilitate the effective implementation of the rule's objectives.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
