Reporting Loan Rates Based on a Spread to a Benchmark or Reference Rate

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• Reporting Loan Rates Based on a Spread to a Benchmark or Reference Rate

Reporting Loan Rates Based on a Spread to a Benchmark or Reference Rate

Status: SEC APPROVED RULES 2.1.25 Last Updated: 02 Jan 2025

Partial Amendment No. 1 added proposed Rule 6530(a)(4) (Reporting Loan Rates Based on a Spread to a Benchmark or Reference Rate.

To permit Covered Persons to—as an alternative to reporting the rebate rate or lending fee or rate for a Covered Securities Loan—report the spread and identity of the benchmark or reference rate for Covered Securities Loans that are priced based on a spread to a benchmark or reference rate.

Specifically, new proposed Rule 6530(a)(4)(B) would provide that, where a rebate rate or lending fee or rate is determined based on a spread to a benchmark or reference rate, a Covered Person may report:

1. the rebate rate or lending fee or rate as of the date the Covered Securities Loan was effected;

2. the spread; and

3. the identity of the benchmark or reference rate.

4. Alternatively, a Covered Person may report only the rebate rate or lending fee or rate.

Under the original proposal you had to report a fee (non-cash) or rebate (cash). 

Under the new proposal we can also report a (benchmark +/- a spread). 

Notes and Examples:

Status: TO BE REVIEWED Last Updated: 04 Jun 2025

• So if we have a transaction that is priced off a benchmark we would only need to report a modification if the spread were to change; however, if we had reported it as a rebate we would have to report a modification if either the benchmark rate changed or the spread changed.

Other Fees:

• Just an observation and something for the members to opine on but see Other Fees conditional columns below, it states that:

  • Only one of lendingFee, rebateRate, or otherFees may be populated. If more than one or none are provided, the system will reject.

    • If we are going to start populating the benchmarkSpread new field within the technical specifications how can we then also populate one of the lendingFee, rebateRate, or otherFees as requested below doesn’t populating one of these contradict populating the benchmarkSpread new field?