SEC Securities Lending Rule 10c-1a & 13f-2 Fifth Circuit Court of Appeals Decision
August 28, 2025
On August 25, 2025, the U.S. Court of Appeals for the Fifth Circuit issued a ruling in the case N.A.P.F.M. et al. v. SEC, which reviewed the SEC’s Rule 10c-1a (Securities Lending Reporting) alongside Rule 13f-2 (Short Sale Reporting).
The Court upheld the SEC’s authority to implement both rules but determined that the SEC must conduct additional analysis on the combined economic impact of these rules. As a result, the rules remain in place for now, but have been remanded back to the SEC for further review.
At this stage:
- Rule 10c-1a has not been vacated — industry participants should continue preparing for compliance.
- The SEC may consider further adjustments or timeline extensions as it reassesses the economic impact.
- FINRA’s development of the SLATE™ platform is ongoing, with recent updates (Version 1.2) already published to the industry.
What This Means for the Industry
The decision introduces some uncertainty around timing and scope. We believe that the overarching regulatory objective for greater transparency in securities lending remains, given that the statutory authority to adopt the rules were upheld under the Dodd-Frank provisions by the 5th circuit.
EquiLend’s Commitment
EquiLend has been actively engaged in regulatory and industry discussions around Rule 10c-1a, and this outcome was anticipated as part of ongoing dialogue.
Our 10c-1a reporting solution is being developed with the flexibility to adapt to evolving requirements, ensuring our clients are well-prepared under any scenario.
Have questions about 10c-1a? Check out our FAQ linked here.
We will continue to keep clients informed as developments unfold and provide guidance on readiness steps.
For any questions about how this may impact your firm’s reporting strategy, please reach out to your EquiLend representative or fill out our form here https://equilend.com/services/sec-rule-10c-1a/.