Termination Date & Term Date & Terminated Loan Indicator

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• ISLA & ISLA Americas SEC 10c-1a


• SEC Approved FINRA Rules: 2nd January 2025


• Reporting of Loan Information


• Termination Date & Term Date & Terminated Loan Indicator

Termination Date & Term Date & Terminated Loan Indicator

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

FINRA stated that, while FINRA removed the requirement that Covered Persons append a Terminated Loan indicator, FINRA is retaining the requirement that Covered Persons populate a field with the termination date of the Covered Securities Loan, which is expressly required to be reported to an RNSA under Rule 10c-1a(c)(11).

(Tenor of the trade i.e. Open or Term) Accordingly, FINRA stated that, when reporting to SLATE an Initial Covered Securities Loan that is an open loan, a Covered Person would be required to leave the term date field blank; when reporting an Initial Covered Securities Loan that is a term loan, a Covered Person would report the loan’s termination date in the termination date field. Partial Amendment No. 1, 89 FR 92229 n.20.

Notes and Examples:

Status: TO BE REVIEWED Last Updated: 04 Jun 2025

• See Termination Date and Term Date Lifecycles, Sequences and Fields below in conjunction with the removed Terminated Loan Indicator field across the different lifecycle events:

• Termination Date: Should be used to report the termination of an open term trade or the early termination of a fixed term trade

• Term Date: Defines the tenor of the trade whether this be an open term or fixed term tenor

• Terminated Loan Indicator: Field and lifecycle events removed under Tech specs revision v1.1

  • Example Questions to work through:

    • Open Term & Termination Date:

      • So if you had a new loan not a pre-existing loan, then you would report sequence 25 below New Loan Event and leave blank

      • If in 2 weeks time this loan was closed / terminated then you would report sequence 12 modification and leave this field blank.

      • You would also report sequence 10 correction and populate the date of the termination of the trade.

        • Questions?

          • What should be the Event Date Time of this sequence 12 modification?

          • On Open term tenor trades should you report the termination date only on the day the trade is terminated = actual, or if knowing prior to the termination date report this sooner being contractual? Answer: as per new description details below “Will reject if date is before System Start Date or is a future date” meaning this can only be done on the actual day.

      • Settlement:

        • If the trade successfully settles you would populate the loan quantity as ZERO

        • Unsettled: If the trade does not settle you would leave the instructed quantity and not reduce the loan quantity to ZERO

    • Term Loan & Termination Date:

      • If the loan is a Fixed Term Trade then you would populate sequence 25 term date with the Fixed term date

      • If the original Fixed term date i.e. the tenor were to change to a new / different Fixed term date you would use sequence 12 modification to modify the original Fixed term date either moving the original Fixed term date out further or in earlier

      • If the Fixed term trade was to terminate earlier than the original Fixed term date tenor, you would then report sequence 10 correction and populate the date of the termination of the trade.

        • Questions?

          • What should be the Event Date Time of this sequence 12 modification?

          • Where a Fixed term trade terminates earlier than the original Fixed Term date being TODAY you should report sequence 10 correction and populate the date of the termination of the trade for TODAY’s date ?

          • Where the original Fixed term trade date is changed / amended earlier than the original Fixed term date but is greater than TODAY you would report sequence 12 modification and modify the new Fixed term date, to that date, greater than TODAY ?

      • Settlement:

        • If the trade successfully settles you would populate the loan quantity as ZERO

        • Unsettled: If the trade does not settle you would leave the instructed quantity and not reduce the loan quantity to ZERO

• A covered person that agrees to a covered securities loan that ultimately does not settle would still be required to report the termination of that loan pursuant to proposed Rule 6530(b)(2) by submitting a loan modification to terminate a covered securities loan. However, because the securities were never transferred to the borrower, the loan modification termination report would not include a modification of the loan amount to zero (unlike in the case of a loan that was terminated because the shares were returned), which would allow FINRA to identify the loan as being terminated because it was unsettled as opposed to a return of shares.

• Again, upon the termination of either an open or a term loan, a covered person would be required to submit a loan modification sequence 12 report to terminate the covered securities loan, which would reflect a loan quantity of zero—allowing FINRA to identify that the loan has been terminated. See adopting Release, 88 FR 75644, 75672 n.426.

• See below the sequences, field names and lifecycle events for:

  • Termination Date, Term Date and the removal of the Terminated Loan Indicator