Comment Deadline Set For SEC Proposal To Require Extensive Disclosures On Securities Loans

An SEC proposal to impose extensive reporting requirements on any individual loaning a security was published in the Federal Register. Comments on the proposal must be submitted by January 1, 2022. The SEC stated the rule would enhance the "transparency and efficiency" of the securities lending market.

As previously covered, under proposed SEA Rule 10c-1 ("Securities Lending Transparency"), securities lenders would have to report to FINRA certain terms of their transactions within 15 minutes of the trade, which FINRA would then make public.

The proposal also would require securities lenders to provide FINRA with information that would not be made public, including:

• the legal names of the loans' parties;