The US Securities and Exchange Commission recently adopted a tempered version of its November 2021 proposed rule aimed at bringing greater transparency to securities lending. Among its aspects, the final rule eased the timeframe needed for public disclosure of more granular data to 20 days after the loan is made.
Speaking to Ignites, partner Ignacio Sandoval said that “it’s not going to be a ticker tape for securities lending. It’s next-day aggregate reporting; that’s huge.”
A ticker tape–like trail of individual loans would have been a big problem for the industry, Ignacio continued. Under the final rule, in contrast to the proposed one, “predatory traders can’t use that [loan] information and manipulate it.”.
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