Thursday, June 20, 2024

SEC Extends SLATE Review Period Due to Industry Concerns

Many Believe FINRA Exceeded its Mandate

Author: David Schwartz J.D. CPA

The SEC extended the review period for FINRA's proposed SLATE rules, designed to implement securities lending reporting under Rule 10c-1a. Industry participants voiced concerns that the proposed rules exceed the SEC mandate by requiring additional data elements not explicitly outlined in the regulation. These elements, such as expected settlement dates, fee details, and various modifiers, could potentially expose sensitive financial information and proprietary trading strategies. Additionally, concerns were raised about the reintroduction of intraday reporting and the lack of transparency in the rulemaking process. Overall, the industry calls for a more measured approach that balances regulatory requirements with the need to protect confidential information.

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Wednesday, October 25, 2023

New Money Fund Reforms: Safer and More Resilient Cash Collateral Pools?

More liquidity, transparency, and safety for institutional investors?

Author: David Schwartz J.D. CPA

The Securities and Exchange Commission (SEC) recently adopted final rules on money market (2a-7) fund reforms. These reforms are designed to make money market funds more resilient and liquid, potentially making them safer and more attractive vehicles for mutual funds to use as collateral pools for their securities lending programs.

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Friday, October 13, 2023

SEC Adopts Long Awaited Securities Lending Disclosure Rule

Persuasive Public Comment Helps Mold the Final Rule

Author: David Schwartz J.D. CPA

The Securities and Exchange Commission (SEC) has adopted a new rule, rule 10c-1, to increase transparency in the securities lending market. The rule requires certain persons to report information about securities loans to a registered national securities association (RNSA). The RNSA will then make certain information publicly available. Published in December of 2021, the proposal received considerable public comment, requiring the Commission to extend the initial 30-day comment period twice, once due to a technical problem receiving comments, and then again to consider whether there would be any effects of proposed Rule 13f–2 that the Commission should consider in connection with proposed Rule 10c–1. Throughout the final release, the Commission notes where persuasive public comment informed the ultimate text of the rule.

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Wednesday, January 11, 2023

The SEC Unveils its Agenda for 2023

A Busy Mix of New Business and Old

Author: David Schwartz J.D. CPA

In its recently updated regulatory flexibility agenda, the Securities and Exchange Commission has set its priorities for 2023. A mix of old and new business, the Commission's 2023 plans include finalizing 29 existing proposals and placing 23 new proposals up for consideration. 

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Monday, November 28, 2022

SEC Beefs Up Proxy Voting Disclosure

Does meaningful proxy voting transparency reveal too much?

Author: David Schwartz J.D. CPA

On November 2, 2022 the Securities and Exchange Commission finalized the first of its market data rule proposals. The amendments to form N-PX bring greater detail, consistency, and usability to the proxy voting information reported by mutual funds. These changes came in response to investors, who have said for nearly twenty years that they would benefit from more readily usable information and more details. But, new disclosures about proxy voting versus securities lending may have funds and their lending agents reexamining their policies and priorities. 

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Number of views (1476)