Loan Information To Be Reported

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• ISLA & ISLA Americas SEC 10c-1a


• SEC Approved FINRA Rules: 2nd January 2025


• Reporting of Loan Information


• Loan Information To Be Reported

Loan Information To Be Reported

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

Proposed Rule 6530(a)(2) (Loan Information To Be Reported) would specify the items of information that must be reported to FINRA. Specifically, as modified by Partial Amendment No. 1,22 proposed Rule 6530(a)(2)(A) through (L) would require that Initial Covered Securities Loan reports must contain the below x12 non-confidential data elements:

• (A) The legal name of the security issuer and the Legal Entity Identifier (“LEI”) of the issuer (if the issuer has a non-lapsed LEI)

• (B) Security symbol, CUSIP, ISIN, or FIGI, or other security identifier

• (C) The date the Covered Securities Loan was effected;

• (D) The time the Covered Securities Loan was effected;

• (E) The name of the platform or venue where the Covered Securities Loan was effected

• (F) The amount of the Reportable Securities loaned

  • Proposed Rule 6530(a)(3) specifies that, for a Covered Securities Loan of a security reportable to CAT, a Covered Person must report the number of shares loaned. For a Covered Securities Loan of a security reportable to Trade Reporting and Compliance Engine (“TRACE”) or the Municipal Securities Rulemaking Board’s Real-Time Transaction Reporting System (“RTRS”), a Covered Person must report the total par value of the securities loaned. Notice, 89 FR 38206 n.29.

• (G) The type of collateral used to secure the Covered Securities Loan

• (H) For a Covered Securities Loan collateralized by cash, the rebate rate or any other fee or charges

• (I) For a Covered Securities Loan not collateralized by cash, the securities lending fee or rate, or any other fee or charges

• (J) The percentage of collateral to value of Reportable Securities loaned required to secure such Covered Securities Loan

• (K) The termination date of the Covered Securities Loan

• (L) Whether the borrower is a Broker or Dealer, a customer (if the person lending securities is a Broker or Dealer), a Clearing Agency, a Bank, a Custodian, or other person.

As modified by Partial Amendment No. 1,30 proposed Rule 6530(a)(2)(M) through (U) would also require that Initial Covered Securities Loan reports contain the x9 below confidential data elements:

• (M) If known, the market participant identifier (“MPID”) of the Covered Person

• (N) If known, the legal name of each party to the Covered Securities Loan (other than the customer from whom a Broker or Dealer borrows fully paid or excess margin securities pursuant to SEA Rule 15c3-3(b)(3));

• (O) If known, the CRD Number or Investment Adviser Registration Depository (“IARD”) Number of each party to the Covered Securities Loan;

• (P) If known, the MPID of each party to the Covered Securities Loan;

• (Q) If known, the LEI of each party to the Covered Securities Loan;

• (R) If known, whether each party to the Covered Securities Loan is the lender, the borrower, or an intermediary between the lender and the borrower;

• (S) If the person lending securities is a Broker or Dealer and the borrower is its customer, whether the security is loaned from the Broker’s or Dealer’s securities inventory to a33 customer of such Broker or Dealer;

• (T) If known, whether the Covered Securities Loan is being used to close out a fail to deliver pursuant to Rule 204 of SEC Regulation SHO or to close out a fail to deliver outside of Regulation SHO; and

• (U) Where a Covered Person’s daily submission includes two or more reports related to the same Covered Securities Loan (e.g., an Initial Covered Securities Loan and a Loan Modification to terminate the Covered Securities Loan) and FINRA has not yet assigned a unique identifier to the Initial Covered Securities Loan, a unique identifier assigned to the Covered Securities Loan by the Covered Person responsible for reporting the loan to SLATE.

  • As originally proposed in the Notice, this data element (U) would have provided the following: “The unique internal identifier assigned to the Covered Securities Loan by the Covered Person responsible for reporting the loan to SLATE.”