Proposed Rule2022-04384
Reopening of Comment Period for Reporting of Securities Loans
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
March 2, 2022
Effective
December 8, 2021
Issuing agencies
Securities and Exchange Commission
Abstract
On November 18, 2021, the Securities and Exchange Commission issued for comment a proposed rule under the Securities Exchange Act of 1934 ("Exchange Act") in Release No. 34-93613 (Nov. 18, 2021), 86 FR 69802 (Dec. 8, 2021) regarding the reporting of securities loans. The Commission is reopening the comment period for the proposed rule in light of the proposed Exchange Act rule regarding short sale disclosure. In particular, the Commission is soliciting comment on any potential effects of the proposed Exchange Act rule regarding short sale disclosure that the Commission should consider in determining whether to adopt the proposed Exchange Act rule regarding the reporting of securities loans.
Full Text
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<title>Federal Register, Volume 87 Issue 41 (Wednesday, March 2, 2022)</title>
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[Federal Register Volume 87, Number 41 (Wednesday, March 2, 2022)]
[Proposed Rules]
[Page 11659]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-04384]
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SECURITIES AND EXCHANGE COMMISSION
17 CFR Part 240
[Release No. 34-94315; File No. S7-18-21]
RIN 3235-AN01
Reopening of Comment Period for Reporting of Securities Loans
AGENCY: Securities and Exchange Commission.
ACTION: Proposed rule; reopening of comment period.
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SUMMARY: On November 18, 2021, the Securities and Exchange Commission
issued for comment a proposed rule under the Securities Exchange Act of
1934 (``Exchange Act'') in Release No. 34-93613 (Nov. 18, 2021), 86 FR
69802 (Dec. 8, 2021) regarding the reporting of securities loans. The
Commission is reopening the comment period for the proposed rule in
light of the proposed Exchange Act rule regarding short sale
disclosure. In particular, the Commission is soliciting comment on any
potential effects of the proposed Exchange Act rule regarding short
sale disclosure that the Commission should consider in determining
whether to adopt the proposed Exchange Act rule regarding the reporting
of securities loans.
DATES: The comment period for the proposed rule published in the
Federal Register on December 8, 2021, at 86 FR 69802, is reopened.
Comments should be received on or before April 1, 2022.
ADDRESSES: Comments may be submitted by any of the following methods:
Electronic Comments
<bullet> Use the Commission's internet comment form (<a href="http://www.sec.gov/rules/submitcomments.htm">http://www.sec.gov/rules/submitcomments.htm</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#0270776e672f616d6f6f676c7671427167612c656d74"><span class="__cf_email__" data-cfemail="b0c2c5dcd59dd3dfddddd5dec4c3f0c3d5d39ed7dfc6">[email protected]</span></a>. Please include
File Number S7-18-21 on the subject line.
Paper Comments
<bullet> Send paper comments to Vanessa A. Countryman, Secretary,
Securities and Exchange Commission, 100 F Street NE, Washington, DC
20549-1090.
All submissions should refer to File Number S7-18-21. This file number
should be included on the subject line if email is used. To help the
Commission process and review your comments more efficiently, please
use only one method of submission. The Commission will post all
comments on the Commission's website (<a href="http://www.sec.gov/rules/proposed.shtml">http://www.sec.gov/rules/proposed.shtml</a>). Comments are also available for website viewing and
printing in the Commission's Public Reference Room, 100 F Street NE,
Washington, DC 20549 on official business days between the hours of 10
a.m. and 3 p.m. Operating conditions may limit access to the
Commission's Public Reference Room. All comments received will be
posted without change. Persons submitting comments are cautioned that
we do not redact or edit personal identifying information from comment
submissions. You should submit only information that you wish to make
available publicly.
Studies, memoranda, or other substantive items may be added by the
Commission or staff to the comment file during this rulemaking. A
notification of the inclusion in the comment file of any such materials
will be made available on our website. To ensure direct electronic
receipt of such notifications, sign up through the ``Stay Connected''
option at <a href="http://www.sec.gov">www.sec.gov</a> to receive notifications by email.
FOR FURTHER INFORMATION CONTACT: Theresa Hajost, Special Counsel, John
Guidroz, Branch Chief, Josephine J. Tao, Assistant Director, Office of
Trading Practices, Division of Trading and Markets, Securities and
Exchange Commission, 100 F Street NE, Washington, DC 20549, at (202)
551-5777.
SUPPLEMENTARY INFORMATION:
I. Background
In November 2021, the Commission issued for comment proposed 17 CFR
240.10c-1 (``Rule 10c-1''), Reporting of Securities Loans, under the
Exchange Act.\1\ The proposed rule is designed to increase the
transparency and efficiency of the securities lending market by
requiring any person that loans a security on behalf of itself or
another person to report the material terms of those securities lending
transactions and related information regarding the securities the
person has on loan and available to loan to a registered national
securities association (``RNSA'').\2\ The comment period for proposed
Rule 10c-1 ended on January 7, 2022.
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\1\ See Reporting of Securities Loans, Exchange Act Release
93613 (Nov. 18, 2021), 86 FR 69802 (Dec. 8, 2021).
\2\ Proposed Rule 10c-1 would also require the RNSA to publicly
disseminate certain information.
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II. Reopening of Comment Period
On February 25, 2022, the Commission proposed 17 CFR 240.13f-2
(``Rule 13f-2'') \3\ which is designed to provide greater transparency
through the publication of short sale related data to investors and
other market participants. Proposed Rule 13f-2 and related Proposed
Form SHO would require that institutional money managers \4\ file via
the Commission's Electronic Data Gathering, Analysis, and Retrieval
System (EDGAR), on a monthly basis, certain short sale related data,
some of which would be aggregated and made public.\5\
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\3\ Short Position and Short Activity Reporting by Institutional
Investment Managers, Exchange Act Release 94313, Feb. 25, 2022.
\4\ As defined in Section 13(f)(6)(A) of the Exchange Act and
for purposes of proposed Rule 13f-2, ``institutional investment
manager'' includes any person, other than a natural person,
investing in or buying and selling securities for its own account,
and any person exercising investment discretion with respect to the
account of another person. 15 U.S.C. 78m(f)(6)(A).
\5\ In addition to proposed Rule 13f-2 and proposed Form SHO,
the Commission proposed: (i) Rule 205, which would establish a new
``buy to cover'' order marking requirement for certain purchase
orders; and (ii) proposed amendments to the national market system
plan governing the Consolidated Audit Trail (``CAT''), which would
require CAT reporting firms to report ``buy to cover'' order marking
information and reliance on the bona fide market making exception in
the Commission's short sale rules.
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The Commission is reopening the comment period for proposed Rule
10c-1 so that commenters may consider whether there would be any
effects of proposed Rule 13f-2 that the Commission should consider in
connection with proposed Rule 10c-1.
The Commission is reopening the comment period for proposed Rule
10c-1 Reporting of Securities Loans \6\ until April 1, 2022.
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\6\ See Exchange Act Release No. 93613 (Nov. 18, 2021), 86 FR
69802 (Dec. 8, 2021).
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By the Commission.
Dated: February 25, 2022.
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2022-04384 Filed 3-1-22; 8:45 am]
BILLING CODE 8011-01-P
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