Securities Lending Update: SEC Extends Review Period For Proposed Securities Lending Rules

On June 10, 2024, the US Securities and Exchange Commission ("SEC" or the "Commission") published a notice extending the period by which the Commission must take action on the Financial Industry Regulatory Authority, Inc.'s ("FINRA") proposed new FINRA Rule 6500 series ("SLATE Rules")¹ to Aug. 5, 2024. FINRA's proposed rulemaking is mandated by recently adopted Rule 10c-1a of the Securities Exchange Act of 1934, as amended ("Exchange Act") and, if adopted, would implement FINRA's Securities Lending and Transparency Engine ("SLATE") for the reporting of securities loans.

The proposed SLATE Rules would apply to any covered person or reporting agent subject to Exchange Act Rule 10c-1a ("Rule 10c-1a"), a group that includes registered broker-dealers, registered investment advisers, private funds, agent banks and registered clearing agencies, as well as foreign (non-US) persons.² Registered investment advisers and private funds are not subject to FINRA jurisdiction,