Reporting Rates

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Reporting Rates

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

Partial Amendment No. 1 added proposed Rule 6530(a)(4) to permit Covered Persons to—in addition to reporting the rebate rate or lending fee or rate for a Covered Securities Loan—also 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.

Specifically, proposed Rule 6530(a)(4)(B) provides 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

FINRA stated that this will provide Covered Persons with additional options regarding the manner in which they may report a rebate rate or lending fee or rate, and that these proposed amendments are appropriate to provide Covered Persons flexibility with how they must report the rebate rate or lending fee.

FINRA stated that this flexibility should address commenters’ concern that Covered Persons would be required to report loan rate modifications when the rebate rate changes solely as a result of a change to the underlying benchmark rate (where there is no change in the negotiated spread or identity of the benchmark).

To accommodate market practices and rebate rate variability, FINRA stated that it intends to accept negative values in the rebate rate field if the collateral type is reported as cash.

SLATE’s validation logic will accept a wide range of values in the rebate rate/lending fee or rate fields, and SLATE will not reject reports because a cash collateral loan is reported with a negative rebate rate.

Footnote:

See Partial Amendment No. 1, 89 FR 92230. FINRA stated that a Covered Person would be required to report a Loan Modification pursuant to proposed Rule 6530(b)(2) in the event of a change to the negotiated spread or to the identity of the benchmark or reference rate.

Partial Amendment No. 1, 89 FR 92230 n.29. See Rule 10c-1a Adopting Release, 88 FR 75672 (stating that if a registered national securities association (“RNSA”) chooses to allow market participants to report a spread and a benchmark, then no modification would be required to be reported from day to day unless there were a change in the negotiated spread or benchmark).