SIFMA and the Asset Management Group ("AMG") raised concerns regarding an SEC-proposed rule on securities loan reporting. The proposed rule would create extensive reporting requirements for any individuals loaning a security (see prior coverage).
In their comment letters, SIFMA and AMG raised concerns over (i) the ambiguity of the positions that are subject to the reporting requirement, (ii) the provision of incomplete, inaccurate and potentially misleading data that overestimates the loanable securities in the market, (iii) the feasibility of the 15-minute reporting requirement, (iv) the cross-border implications of the proposed rule and (v) the public dissemination of securities loan data, which may lead many to exit from the shorting market. In addressing these concerns, the letters recommended extensive changes to the proposed rule.
Both letters highlighted SIFMA's previous assertions that the 30-day comment period is insufficient to fully analyze and consider the rule proposal. SIFMA, along with several other trade associations, filed a request on November 23, 2021, to extend the consideration period.
The SEC proposed a rule that would impose extensive reporting requirements on any individual loaning a security.