SEC Reopens Comment Period on SBS Large Position Reporting, Provides Additional Economic Analysis

The SEC reopened the comment period on a proposed rule to require reporting of large positions in security-based swaps ("SBS"). SEC staff provided additional analysis on the proposed thresholds in the rule.

The staff analysis focused on SBS data reported to Security-Based Swap Data Repositories ("SBSDR") and two aspects of commenter concerns: (1) whether data submitted to SBSDRs currently addresses concerns sufficiently and (2) the impact on activist investors, and in particular, whether certain Schedule 13D lead filers, would have to report SBS positions under the proposed thresholds in new Rule 10B-1. As previously covered, proposed SEA Rule 10B-1 would require reporting of SBS positions (as well as positions in related securities and derivatives) above specified thresholds, using proposed new form Schedule 10B.

Comments on the proposal are due 30 days after publication in the Federal Register or by August 21, 2023, whichever is later.