SEC Approves FINRA Rules to Establish Securities Lending Reporting Facility

WHAT YOU NEED TO KNOW:

On January 2, 2025, the SEC approved the FINRA Rule 6500 Series (the SLATE Rules), which establish requirements relating to the Securities Lending and Transparency Engine (SLATE)—a new reporting facility for securities loans.
Absent some relief, securities loan market participants that are Covered Persons (a term that includes non-FINRA members) will be expected to begin reporting loan information to SLATE starting January 2, 2026. Certain information reported to SLATE will be publicly disseminated by FINRA.
There is a pending legal challenge before the US Court of Appeals for the Fifth Circuit to Rule 10c-1a under the Securities Exchange Act of 1934, which provides the basis for FINRA’s adoption of the SLATE Rules. The outcome of that challenge could impact SLATE’s rollout.

On January 2, 2025, the Securities and Exchange Commission (SEC) approved the FINRA Rule 6500 Series (the SLATE Rules), which establishes the Securities Lending and Transparency Engine (SLATE), a new facility for the reporting and public dissemination of information about certain securities loans. The SEC approved the SLATE Rules despite a pending legal challenge in the US Court of Appeals for the Fifth Circuit to Rule 10c-1a under the Securities Exchange Act of 1934, which directed FINRA to implement the SLATE Rules.

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