Body of Law:
This rule would be expensive to implement and would likely drive many participants from the market. Aspects of it are impractical and inconsistent with the mechanics of the securities lending business, most notably the 15-minute reporting requirement. Yet the SEC would give only a 30-day comment period that includes the holidays, and runs contemporaneously with other major rulemakings.
This is not a case where there is a current emergency or financial crisis that may provide a justification for a rushed regulatory action. Nor is it a situation where the rule proposed is so straightforward that there is nothing to be learned from public comment. (If that were the case, the SEC would not have 100 questions to ask, and would not have proposed a rule that is impractical in so many aspects.)
It is not merely that the rule proposal is flawed; the rulemaking process on this proposal is flawed.
