SEC Proposes Rule to Provide Transparency in the Securities Lending Market

The Securities and Exchange Commission today published proposed Exchange Act Rule 10c-1, which would require lenders of securities to provide the material terms of securities lending transactions to a registered national securities association, such as the Financial Industry Regulatory Authority. The registered national securities association would then make the material terms of the securities lending transaction available to the public. "Securities lending and borrowing is an important part of our market structure. Currently, though, the securities lending market is opaque," said SEC Chair Gary Gensler. "In today’s fast-moving financial markets, it’s important that market participants have access to fair, accurate, and timely information.