SEC RULE 10c-1a

The U.S. Securities & Exchange Commission’s (SEC) final rule 10c-1a is designed to provide investors, other market participants and regulators with access to loan rates and other material information regarding securities lending transactions in a timely manner. Repo transactions are out of scope.

Lenders are required to report loan transactions and modifications. Borrowers are required to report transactions when the borrower is a broker-dealer when borrowing fully paid or excess margin securities. The SEC believes that this will improve price discovery, increase market efficiency and aid regulators’ oversight of this important market.

SEC 10c-1a - EquiLend Offers:

SEC Reporting

Utilize existing & new products to fulfill 10c-1a reporting

Data Archiving

Retention of trade reporting data on EquiLend servers to be readily available for regulator/client access

Reporting Support

Dedicated team to provide daily product support & monitor SEC activity for future regulatory changes

Final Rule Purpose & Key Aspects

Covered persons must provide certain terms of their securities lending transactions to an RNSA
54 key fields to be reported by the end of the day on which a covered securities loan is effected, including: time and date of the loan, amount of securities loaned, rates, fees, charges and rebates, type of collateral and other transaction information
RNSA will produce Unique Identifiers for all loans reported
Expected compliance date with this regulation is January 2, 2026

EquiLend’s 10c-1a Solution

EquiLend intends, and is well placed, to provide a reporting solution for clients

EquiLend is a registered broker dealer and therefore has the required regulatory status to act as a Reporting Agent

EquiLend already captures large volumes of intraday and end-of-day transaction and position data in our existing solutions (OneFile, SFTR, Spire, etc.)

EquiLend has heritage/experience in the reporting space gained through the development of solutions for ALD and SFTR processing and reporting

EquiLend is also well placed to incorporate data on securities lending published by an RNSA into its range of Data & Analytics solutions

10c-1a vs SFTR

SEC 10c-1

What’s the difference between SEC 10c-1a and SFTR?

Dive into the details of our side-by-side comparison of SEC Rule 10c-1a and the European reporting rule SFTR.

Timeline

10/13/2023

Regulation Release

1/2/2024

Final Rule 10c-1a Becomes Effective

5/1/2024

FINRA Implementation Proposal

8/5/2024

SEC Action on FINRA Requirements

1/2/2025

FINRA Proposed Rule in Effect

7/1/2025

FINRA UAT Period Opens

1/2/2026

Regulation Go-Live

4/2/2026

FINRA Public Reporting Go-Live

10c-1a Insight

Demystifying 10c-1a: EquiLend Navigates the Path to Transparency Part 2

We previously highlighted the challenges relating to effected vs. settlement, omnibus vs. allocation trades and rules for reporting evergreen trades under the SEC’s 10c-1a final rule. As we inch closer to the May 2 publication date of FINRA’s 10c-1a rule interpretation, we explore 3 additional ambiguities that, without clarification, could hinder a smooth compliance.

Demystifying 10c-1a: EquiLend Navigates the Path to Transparency

EquiLend’s Kevin McNulty, Head of RegTech Solutions, dives into some of the intricacies of 10c-1a implementation while providing an analysis of the challenges and how EquiLend’s 10c-1a solution will support clients reporting needs.

SEC Rule 10c-1a: Exploring its Purpose, Scope and the Legal Challenge to its Implementation

In our latest analytical piece, we explore the purpose, scope and legal challenges surrounding the implementation of SEC Rule 10c-1a while diving into how EquiLend’s ecosystem of solutions is uniquely positioned to help the market comply with 10c-1a’s reporting requirements.

10c-1 is Approaching: What Should the Market Expect?

EquiLend’s Kevin McNulty, Head of RegTech Solutions, reflects on speculation around the proposed SEC 10c-1 rule while considering the impact on markets and liquidity.

SFTR and SEC Rule 10c-1: Two Roads to the Same Destination

In our latest insight piece, we explore the impacts of the Securities Financing Transaction Regulation (SFTR) in the EU and UK, and the potential implementation of mandatory reporting for securities lending transactions in the U.S. under the proposed SEC 10c-1 rule.

The Evolution of the Beneficial Owner: Global Investor Beneficial Owners Guide 2023

EquiLend’s Dimitri Arlando, Head of Data & Analytics Solutions EMEA & APAC, sat down with Global Investor Group to discuss the facts, figures and trends seen throughout 2022, the evolution of beneficial owners and more.

The EquiLend Ecosystem: Forming Connections Through Solutions

EquiLend’s Kevin McNulty, Head of RegTech Solutions, sat down with Securities Finance Times to reflect on current challenges faced by market participants and how EquiLend is meeting these concerns with solutions.