92228 Federal Register / Vol. 89, No. 225 / Thursday, November 21, 2024 / Notices 

4Applicant states that one of its subsidiaries 

holds investment securities. 

5Applicant states that it intends to calculate this 

percentage by consolidating its financial statements 

with the financial statements of its wholly-owned 

subsidiaries (but not with any majority-owned 

subsidiaries that may be acquired in the future). 

6Applicant states that is has not, and does not 

expect to, earn investment income from strategic 

investments. 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 100046 

(May 1, 2024), 89 FR 38203 (May 7, 2024) 

(‘‘Notice’’). Comments received on the proposed 

rule change are available at: https://www.sec.gov/ 

comments/sr-finra-2024-007/srfinra2024007.htm. 

4 15 U.S.C. 78s(b)(2). 

5See Securities Exchange Act Release No. 100305 

(June 10, 2024), 89 FR 50644 (June 14, 2024). The 

Commission designated August 5, 2024, as the date 

by which the Commission shall approve or 

disapprove, or institute proceedings to determine 

whether to disapprove, the proposed rule change. 

6 15 U.S.C. 78s(b)(2)(B). 

employees spend time on matters 

relating to the management of 

Applicant’s investment securities. 

Applicant states that none of its officers, 

directors or employees spends or 

proposes to spend of his or her time to 

the management of Capital Preservation 

Instruments on behalf of Applicant. 

d. Nature of Assets. Applicant states 

that, as of October 31, 2023, Applicant’s 

investment securities constituted 

approximately 30.1% of its total assets 

(excluding Government securities and 

cash items) on an unconsolidated basis.4

Furthermore, Applicant states that as of 

October 31, 2023, 100% of its 

investment securities consist of Capital 

Preservation Instruments. Applicant 

states that it uses its Capital 

Preservation Instruments to finance its 

continued operations in connection 

with the development of the Company’s 

software. Applicant states that it may in 

the future make strategic investments in 

‘‘other investments’’ consistent with 

Rule 3a–8. Applicant states, however, 

that no more than 10% of its total assets 

(exclusive of Government securities and 

cash items, including securities issued 

by money market funds registered under 

the Act) will consist of investment 

securities other than Capital 

Preservation Instruments.5 Applicant 

states that it uses current assets, 

including its Capital Preservation 

Instruments, to finance its continued 

R&D program and operations in 

connection with the development of the 

Applicant’s software. 

e. Sources of Income and Revenue. 

Applicant represents that since its 

inception it has carried net operating 

losses. Applicant states that it does, 

however, derive income from its 

investment securities. Applicant states 

that a review of its current source of 

revenues provides a more accurate 

review of its operating company status, 

particularly, given the upward trend in 

recognizing substantially increased 

revenues due to sales of new 

subscriptions. Applicant states that it 

recognizes substantially all of its 

revenues from fees based on 

subscriptions and support. Applicant 

states that its revenues for the fiscal 

years ended July 31, 2020, 2021, 2022, 

and 2023 were $431.3 million, $673.1 

million, $1,090.9 million, and $1,671 

million, respectively, on an 

unconsolidated basis. By contrast, 

Applicant states that its net investment 

income in its fiscal years of 2021, 2022, 

and 2023 was $2.8 million, $4.6 million, 

and $60.5 million, respectively. 

Applicant states that all such income 

was derived from Capital Preservation 

Instruments.6 Applicant states that if net 

investment income were compared to its 

revenue, it would be less than 4% of 

revenue for the fiscal year ended July 

31, 2023, and equal to less than 0.5% of 

revenue for the fiscal year ended July 

31, 2022. 

For the fiscal three months ended 

October 31, 2023, Applicant states that 

it earned $25.9 million of net 

investment income, an increase 

compared to $7.9 million for the first 

three months ended October 31, 2022. 

Applicant states that this nonetheless 

represents less than 5.5% of revenue for 

the three months ended October 31, 

2023. Applicant states that the increase 

in net investment income is due to the 

increase in interest rates in the fixed 

income markets. 

7. Applicant asserts that its historical 

development, its public representations 

of policy, the activities of its officers 

and directors, the nature of its assets 

and its sources of revenue and income, 

as discussed in the application, 

demonstrate that it is engaged primarily 

in a business other than that of 

investing, reinvesting, owning, holding 

or trading securities. Applicant thus 

asserts that it satisfies the criteria for 

issuing an order under Section 3(b)(2) of 

the Act. 

Applicant’s Conditions 

Applicant agrees that an order granted 

pursuant to the application will be 

subject to the following conditions: 

1. Applicant will continue to use its 

accumulated cash and securities to 

support its primary business (as such 

business is described in this 

Application); 

2. Applicant will refrain from 

investing or trading in securities for 

speculative purposes; and 

3. No more than 10% of Applicant’s 

total assets will consist of investment 

securities other than Capital 

Preservation Instruments (as such 

capitalized term is defined in 

Applicant’s application). For purposes 

of this condition, total assets excludes 

cash items (including securities issued 

by money market funds registered under 

the Act) and Government securities (as 

defined in Section 2(a)(16) of the Act). 

This percentage is to be determined on 

an unconsolidated basis, except that 

Applicant should consolidate its 

financial statements with the financial 

statements of any wholly-owned 

subsidiaries. 

For the Commission, by the Division of 

Investment Management, under delegated 

authority. 

J. Matthew DeLesDernier, 

Deputy Secretary. 

[FR Doc. 2024–27158 Filed 11–20–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101645; File No. SR– 

FINRA–2024–007] 

Self-Regulatory Organizations; 

Financial Industry Regulatory 

Authority, Inc.; Notice of Partial 

Amendment No. 1 to Proposed Rule 

Change To Adopt the FINRA Rule 6500 

Series (Securities Lending and 

Transparency Engine (SLATETM)) 

November 15, 2024. 

I. Introduction 

On May 1, 2024, the Financial 

Industry Regulatory Authority, Inc. 

(‘‘FINRA’’) filed with the Securities and 

Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’ or ‘‘Exchange Act’’) 1 and 

Rule 19b–4 thereunder,2 a proposed rule 

change (SR–FINRA–2024–007) to adopt 

the new FINRA Rule 6500 Series 

(Securities Lending and Transparency 

Engine (SLATETM)) to (1) require 

reporting of securities loans; and (2) 

provide for the public dissemination of 

loan information. The proposed rule 

change was published for comment in 

the Federal Register on May 7, 2024.3

On June 10, 2024, pursuant to Section 

19(b)(2) of the Act,4 the Commission 

designated a longer period within which 

to approve the proposed rule change, 

disapprove the proposed rule change, or 

institute proceedings to determine 

whether to disapprove the proposed 

rule change.5 On August 5, 2024, the 

Commission instituted proceedings 

under Section 19(b)(2)(B) of the Act 6 to 


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7See Securities Exchange Act Release No. 100655 

(August 5, 2024), 89 FR 65441 (August 9, 2024). 

8 15 U.S.C. 78s(b)(2). 

9See Securities Exchange Act Release No. 101450 

(October 28, 2024), 89 FR 87448 (November 1, 

2024). 

10See Letter from Racquel L. Russell, Senior Vice 

President, Director of Capital Markets Policy, Office 

of General Counsel, FINRA, dated November 14, 

2024 (responding to comments regarding File No. 

SR–FINRA–2024–007) (‘‘Response to Comments, 

SR–FINRA–2024–007’’). 

11The Commission has reformatted FINRA’s 

presentation of its proposed modifications to, and 

descriptions of, the proposed rule change. 

12Partial Amendment No. 1 is also available on 

FINRA’s website at https://www.finra.org/rulesguidance/rule-filings/sr-finra-2024-007. 

13 In addition to the amendments described 

below, FINRA has made conforming changes to 

proposed Rule 6510 and proposed Rule 6540(d). 

FINRA has also made textual changes to better align 

with the language of SEA Rule 10c–1a. 

14See 17 CFR 240.10c–1a (‘‘SEA Rule 10c–1a’’) 

and proposed FINRA Rule 6510 for definitions of 

the terms ‘‘covered securities loan,’’ ‘‘covered 

person,’’ and ‘‘reporting agent’’ as used throughout 

Partial Amendment No. 1. See proposed FINRA 

Rule 6510 for definitions of the terms ‘‘initial 

covered securities loan’’ and ‘‘loan modification’’ as 

used throughout Partial Amendment No. 1. 

15See Partial Amendment No. 1; see also, 

Response to Comments, SR–FINRA–2024–007. 

16See Partial Amendment No. 1; see also, 

Response to Comments, SR–FINRA–2024–007. 

17Securities Exchange Act Release No. 98737 

(October 13, 2023), 88 FR 75644 (November 3, 2023) 

(Reporting of Securities Loans) (‘‘Adopting 

Release’’). 

18See Notice, 89 FR 38203, 38208. 

19See Partial Amendment No. 1; see also, 

Response to Comments, SR–FINRA–2024–007. 

20While FINRA is proposing to delete the 

requirement that covered persons append a 

‘‘terminated loan’’ indicator, FINRA is retaining the 

requirement that covered persons populate a field 

with the termination date of the covered securities 

loan, which is expressly required to be reported to 

an RNSA under SEA Rule 10c–1a(c)(11). When 

reporting an initial covered securities loan to 

SLATE that is an open loan, a covered person 

would be required to leave the termination date 

field blank. When reporting an initial covered 

securities loan that is a term loan, a covered person 

would report the loan’s termination date in the 

termination date field. Upon the termination of 

either an open or a term loan, a covered person 

would be required to submit a loan modification 

report to terminate the covered securities loan, 

which would reflect a loan quantity of zero— 

allowing FINRA to identify that the loan has been 

terminated. See generally, Adopting Release, 88 FR 

75644, 75672 n.426. 

21While Partial Amendment No. 1 removes 

several of the originally proposed fields and the 

proposed indicators and modifiers to facilitate a 

timely initial implementation of SLATE, the 

absence of these elements may impact the quality 

and completeness of the resultant SLATE data. 

After gaining experience with the operation of 

SLATE and the initial data set, FINRA will 

reevaluate whether any future enhancements to the 

SLATE reporting requirements are appropriate, 

including to improve the quality and completeness 

of SLATE data. Any such efforts would be subject 

to a separate proposed rule change with the 

Commission and subject to notice and comment. 

determine whether to approve or 

disapprove the proposed rule change.7

On October 28, 2024, the Commission, 

pursuant to Section 19(b)(2) of the Act,8

designated January 2, 2025, as the date 

by which the Commission shall either 

approve or disapprove the proposed 

rule change.9 On November 14, 2024, 

FINRA responded to comments 10 and 

filed a partial amendment to the 

proposed rule change in response to 

certain comments on the proposed rule 

change (‘‘Partial Amendment No. 1’’). 

Partial Amendment No. 1 is described 

in Item II below, which has been 

substantially prepared by FINRA.11 The 

Commission is publishing this notice to 

solicit comments on Partial Amendment 

No. 1 from interested persons.12

II. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Partial Amendment 

FINRA is proposing the following 

amendments to the filing: 13

1. Reporting Intraday Loan 

Modifications and Changes to the 

Parties to a Loan 

FINRA is proposing to amend the 

Original Proposal to delete the 

supplementary material regarding the 

reporting of intraday loans 

(Supplementary Material .01 (Intraday 

Loan Modifications)) and changes to the 

parties to a loan, including in the 

context of reallocating omnibus loans 

(Supplementary Material .02 (Changes 

to the Parties to a Covered Securities 

Loan)). As originally proposed, Rule 

6530.01 provided that, if a covered 

securities loan 14 is modified multiple 

times throughout the day, a covered 

person must report each loan 

modification as set forth in proposed 

Rule 6530(b). Some commenters 

objected to Supplementary Material .01, 

stating that it was inconsistent with SEA 

Rule 10c–1a, that intraday reporting was 

not required and that only end-of-day 

reporting was mandated under the 

Commission’s rule.15 As originally 

proposed, Rule 6530.02 generally 

provided that, following the addition or 

removal of a party required to be 

identified pursuant to Rule 

6530(a)(2)(O), a covered person must 

report the termination of the previously 

reported loan and report an initial loan 

reflecting the new parties to the loan, if 

known. One commenter asserted that 

proposed Rule 6530.02 contradicts a 

decision by the Commission not to treat 

reallocations among a pooled loan’s 

underlying constituents as a new 

covered securities loan or as a loan 

modification.16

In Partial Amendment No. 1, FINRA 

is proposing to amend the Original 

Proposal to delete both Supplementary 

Material .01 and .02. Proposed Rule 

6530 is not intended to alter when loan 

events are required to be reported as 

loan modifications (including 

terminations) under SEA Rule 10c–1a or 

when new loans must be reported under 

SEA Rule 10c–1a. Thus, under FINRA’s 

proposed rule, covered persons must 

report modifications consistent with the 

Commission’s rule and as described in 

the SEA Rule 10c–1a adopting release.17

Similarly, covered persons must report 

reallocations of loans in a manner 

consistent with SEA Rule 10c–1a and 

the Adopting Release. To the extent a 

loan event is not reportable under SEA 

Rule 10c–1a, there would likewise be no 

SLATE reporting obligations. 

2. Modifiers and Indicators 

FINRA is proposing to amend the 

Original Proposal to delete the proposed 

modifier and indicator requirements. As 

originally proposed, covered persons 

would have been required to append 

specific modifiers and indicators when 

reporting initial covered securities loans 

and loan modifications to SLATE. 

Specifically, proposed Rule 6530(c) 

(Modifiers and Indicators) would have 

required a covered person to identify (1) 

exclusive arrangements, (2) loans to 

affiliates, (3) unsettled loans, (4) 

terminated loans, (5) rate or fee 

adjustments, and (6) basket loans. 

FINRA originally proposed these 

modifiers and indicators to provide 

regulators and the public with 

important information, including where 

the reported rates may not reflect 

current market rates, and to enhance the 

disseminated data and its value to 

market participants and better inform 

the reported rates validation process.18

Industry commenters expressed a 

variety of concerns regarding the 

proposed modifiers and indicators, 

including that these items of 

information extended beyond the data 

elements specified in SEA Rule 10c–1a, 

increased the rule’s complexity and 

implementation burdens, and may raise 

information leakage concerns.19

In Partial Amendment No. 1, FINRA 

is proposing to amend the Original 

Proposal to delete the modifier and 

indicator requirements. Specifically, 

Partial Amendment No. 1 would delete 

Rule 6530(c) to remove the specific 

requirements related to modifiers and 

indicators to identify (1) exclusive 

arrangements, (2) loans to affiliates, (3) 

unsettled loans, (4) terminated loans,20

(5) rate or fee adjustments, and (6) 

basket loans.21

FINRA also proposes to delete the 

requirements in proposed Rule 

6530(a)(2)(Y) and proposed Rule 

6530(b)(2)(I), which state that covered 

persons must report the modifiers and 


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22Firms may choose to append additional 

modifiers and indicators to their SLATE reports 

voluntarily, where available. FINRA would not 

disseminate these voluntarily provided data points 

to the public. 

23See Notice, supra note 3. 

24See Partial Amendment No. 1; see also, 

Response to Comments, SR–FINRA–2024–007. 

25A covered person that agrees to a covered 

securities loan that ultimately does not settle would 

still be required to report the termination of that 

loan pursuant to proposed Rule 6530(b)(2) by 

submitting a loan modification to terminate a 

covered securities loan. However, because the 

securities were never transferred to the borrower, 

the loan modification termination report would not 

include a modification of the loan amount to zero 

(unlike in the case of a loan that was terminated 

because the shares were returned), which would 

allow FINRA to identify the loan as being 

terminated because it was unsettled as opposed to 

a return of shares. See supra note 20. 

26See Notice, supra note 3. 

27See Adopting Release, 88 FR 75644, 75672 

(explaining that how an RNSA chooses to structure 

the reporting of loan rates will determine whether 

a covered person is required to report a 

modification as a result of benchmark changes). 

28See Partial Amendment No. 1; see also, 

Response to Comments, SR–FINRA–2024–007. 

29A covered person would continue to be 

required to report a loan modification pursuant to 

proposed Rule 6530(b)(2) in the event of a change 

to the negotiated spread or to the identity of the 

benchmark or reference rate. See Adopting Release, 

88 FR 75644, 75672 (stating that if an RNSA 

chooses to allow covered persons to report based on 

a spread and a benchmark, then no modification 

would be required to be reported unless there were 

a change in the negotiated spread or benchmark). 

30See Partial Amendment No. 1; see also, 

Response to Comments, SR–FINRA–2024–007. 

31See Notice, supra note 3. 

32See Partial Amendment No. 1; see also, 

Response to Comments, SR–FINRA–2024–007. 

indicators as required by either the Rule 

6500 Series or the SLATE participant 

specification. Partial Amendment No. 1 

also would amend proposed Rule 6510 

(Definitions) to remove the definition of 

the term ‘‘affiliate,’’ as it is no longer 

needed given the deletion of the related 

indicator. FINRA believes it is 

appropriate, at this time, to delete these 

aspects of the Original Proposal to 

facilitate the achievement of the initial 

SLATE reporting requirements in a 

timely manner.22

3. Settlement Date and Effective Date 

FINRA is proposing to amend the 

Original Proposal to remove the 

requirements that covered persons 

report the settlement date and effective 

date in covered securities loan reports. 

As originally proposed, covered persons 

would have been required to report: (1) 

the expected settlement date for initial 

covered securities loans; (2) the 

expected settlement date for 

modifications to a loan’s amount, if 

different from the date of the 

modification; and (3) the effective date 

for all other modifications, if different 

from the date of the modification.23

Industry commenters expressed a 

variety of concerns regarding these 

proposed fields, including that these 

items of information extended beyond 

the data elements specified in SEA Rule 

10c–1a and increased the rule’s 

complexity and implementation 

burdens.24

In Partial Amendment No. 1, FINRA 

is proposing to delete the originally 

proposed settlement date- and effective 

date-related requirements of proposed 

Rules 6530(a)(2)(E) and 6530(b)(2)(F).25

FINRA believes it is appropriate, at this 

time, to delete these requirements to 

facilitate the achievement of the initial 

implementation of SLATE reporting 

requirements in a timely manner. 

4. Rebate Rates, Lending Fees, and 

Other Fees or Charges 

FINRA is proposing to amend the 

Original Proposal to provide covered 

persons with additional options 

regarding the manner in which they 

may report a rebate rate or lending fee 

or rate. As originally proposed, covered 

persons would have been required to 

report loan rates as a percentage when 

reporting to SLATE, even where such 

rate was based on a spread to a 

benchmark.26 Under this framework, 

SEA Rule 10c–1a would require a 

covered person to report a modification 

to SLATE to update the loan’s rate 

where there is a change to the 

underlying benchmark rate.27 Some 

commenters expressed concern that 

reporting modifications to a loan rate 

solely as a result of a change to the 

underlying benchmark rate would 

increase reporting costs and 

implementation burdens.28

In Partial Amendment No. 1, FINRA 

is proposing to adopt Rule 6530(a)(4) 

(Reporting Loan Rates Based on a 

Spread to a Benchmark or Reference 

Rate,) to permit covered persons to—in 

addition to reporting the rebate rate or 

lending fee or rate for a covered 

securities loan—also report the spread 

and identity of the benchmark or 

reference rate for covered securities 

loans that are priced based on a spread 

to a benchmark or reference rate. 

Specifically, new proposed Rule 

6530(a)(4)(B) provides that, where a 

rebate rate or lending fee or rate is 

determined based on a spread to a 

benchmark or reference rate, a covered 

person may report: (a) the rebate rate or 

lending fee or rate as of the date the 

covered securities loan was effected; (b) 

the spread; and (c) the identity of the 

benchmark or reference rate. 

Alternatively, a covered person may 

report only the rebate rate or lending fee 

or rate. 

FINRA believes that these proposed 

amendments are appropriate to provide 

covered persons the flexibility to report 

to SLATE in a manner that is consistent 

with their preference for whether or not 

they must report modifications to the 

rebate rate or lending fee or rate 

described in SEA Rule 10c–1a(c)(8) or 

(9) due to changes to the underlying 

benchmark or reference rate.29 This 

flexibility should address commenters’ 

concern that covered persons would be 

required to report loan rate 

modifications when the rebate rate 

changes solely as a result of a change to 

the underlying benchmark rate (where 

there is no change in the negotiated 

spread or identity of the benchmark).30

Partial Amendment No. 1 would also 

amend the Original Proposal’s 

requirements to specify that other fees 

or charges need not be reported where 

the rebate rate or lending fee or rate 

field is populated. As originally 

proposed, covered persons would have 

been required to report: (1) for a covered 

securities loan collateralized by cash, 

the rebate rate; (2) for a covered 

securities loan not collateralized by 

cash, the securities lending fee; and (3) 

any other fees or charges.31 Some 

commenters expressed concern that the 

Original Proposal extended beyond the 

data elements specified in SEA Rule 

10c–1a by requiring the reporting of 

other fees or charges (beyond a loan’s 

pricing).32

Partial Amendment No. 1 would 

remove the separate requirement in 

proposed Rule 6530(a)(2)(K) to report 

any other fees or charges and amend the 

rebate rate and lending fee reporting 

requirements in proposed Rule 

6530(a)(2)(I) and (J), respectively, to 

mirror the language in SEA Rule 10c– 

1a(c)(8) and (9), respectively. Thus, 

revised proposed Rule 6530(a)(2)(I) 

(renumbered as (a)(2)(H)) would require 

a covered person to report, ‘‘[f]or a 

covered securities loan collateralized by 

cash, the rebate rate or any other fee or 

charges;’’ and revised proposed Rule 

6530(a)(2)(J) (renumbered as (a)(2)(I)) 

would require a covered person to 

report, ‘‘[f]or a covered securities loan 

not collateralized by cash, the securities 

lending fee or rate, or any other fee or 

charges.’’ 

5. Covered Person Capacity and MPID 

FINRA is proposing to amend the 

Original Proposal to delete the 

requirement that covered persons report 

whether the covered person is the 

lender, borrower or intermediary, which 

was intended to help FINRA perform 

data validations, in particular, when a 


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33See Notice, supra note 3. 

34See Partial Amendment No. 1; see also, 

Response to Comments, SR–FINRA–2024–007. 

35See Notice, supra note 3. 

36See Partial Amendment No. 1; see also, 

Response to Comments, SR–FINRA–2024–007. 

37A covered person may use an identifier that it 

previously assigned for internal use or one that the 

firm generated solely for the purpose of reporting 

the loan to SLATE. 

38See Notice, supra note 3. 

39See Partial Amendment No. 1; see also, 

Response to Comments, SR–FINRA–2024–007. 

party other than the covered person 

submitted the SLATE report.33 Some 

commenters expressed concern that this 

requirement extended beyond the data 

elements specified in SEA Rule 10c–1a 

and would increase the complexity of 

the reporting requirements and 

implementation burdens.34

In Partial Amendment No. 1, FINRA 

is proposing to delete proposed Rules 

6530(a)(2)(V) and 6530(b)(2)(G), which 

both required reporting of whether the 

covered person is the lender, borrower 

or intermediary. FINRA believes that 

this proposed amendment is appropriate 

in that it simplifies the initial reporting 

framework. FINRA believes that the file 

submission process would provide 

information sufficient to allow FINRA to 

identify the submitting party and 

therefore the ability to ascertain whether 

a SLATE report is being submitted by 

the covered person, a reporting agent, or 

another party. 

FINRA is also proposing to make a 

conforming amendment to proposed 

Rule 6530(a)(2) to require a covered 

person to submit their market 

participant identifier (‘‘MPID’’), if 

known, when reporting an initial 

covered securities loan, consistent with 

the requirement in proposed Rule 

6530(b)(2)(C) (renumbered as (b)(2)(B)) 

for loan modification reports, which 

will identify in the audit trail the party 

on whose behalf a SLATE report is 

submitted. 

6. Internal Loan Identifiers 

FINRA is proposing to amend the 

Original Proposal regarding the 

requirement that covered persons report 

unique internal loan identifiers. As 

originally proposed, Rules 6530(a)(2)(W) 

and 6530(b)(2)(A) would have required 

covered persons to report the unique 

internal identifier assigned to the 

covered securities loan. With respect to 

an allocation of an omnibus loan 

effected pursuant to an agency lending 

agreement, proposed Rules 6530(a)(2)(X) 

and 6530(b)(2)(B) would have required 

covered persons to report the unique 

internal identifier for the associated 

omnibus loan.35

FINRA proposed Rules 6530(a)(2)(W) 

and 6530(b)(2)(A) to allow FINRA to 

link related loan reports where a FINRA 

identifier had not yet been assigned, 

thereby improving the completeness of 

audit trail data available to regulators 

and the usefulness of the information 

disseminated to the public. In the case 

of proposed Rules 6530(a)(2)(X) and 

6530(b)(2)(B), FINRA intended to use 

the reported information to identify 

where multiple loan reports were 

related to a single omnibus loan, thereby 

providing additional clarity in the loan 

activity statistics disseminated to the 

public and to improve the completeness 

of the audit trail available to regulators. 

Some commenters expressed concerns 

that the required internal loan and 

omnibus loan identifiers extended 

beyond the data elements specified in 

SEA Rule 10c–1a and increased the 

rule’s complexity and implementation 

burdens.36

In Partial Amendment No. 1, FINRA 

is proposing to amend Rule 6530(a)(2) to 

streamline the requirement that a 

unique identifier assigned by the 

covered person to the loan must be 

reported to SLATE. Specifically, revised 

proposed Rule 6530(a)(2)(W) 

(renumbered as (a)(2)(U)) would provide 

that, where a covered person’s daily 

submission includes two or more 

reports related to the same covered 

securities loan (e.g., an initial covered 

securities loan and a loan modification 

to terminate the covered securities 

loan), and FINRA has not yet assigned 

a unique identifier to the initial covered 

securities loan, the covered person must 

report a unique identifier assigned to 

the covered securities loan by the 

covered person responsible for reporting 

the loan to SLATE.37

With this amendment, FINRA is 

narrowing the scope of the requirement 

from the Original Proposal such that, 

instead of applying to all initial covered 

securities loan reports, the requirement 

would be limited to instances where a 

covered person’s daily submission 

includes two or more T+0 reports 

related to the same covered securities 

loan—which is the circumstance that 

gives rise to the audit trail gap sought 

to be addressed by the requirement. 

Similarly, with respect to loan 

modifications, under the amendment, 

where a covered person’s daily 

submission includes two or more T+0 

reports related to the same covered 

securities loan, the covered person must 

report the identifier that was provided 

with respect to the associated same-day 

report for that covered securities loan. 

This amendment is necessary to allow 

FINRA to link same-day T+0 reports 

that relate to the same covered securities 

loan. Without a way to link such 

reports, FINRA would be unable to 

incorporate accurately modifications 

into the daily loan statistics where 

FINRA cannot identify the amount of 

securities impacted by the modification. 

For example, FINRA would be unable to 

determine the information necessary to 

incorporate the modification into the 

volume information described in 

proposed Rule 6540(c)(1). Therefore, 

FINRA believes this amendment is 

appropriate and necessary in that it 

streamlines initial SLATE reporting 

requirements while continuing to allow 

FINRA to accurately record and 

disseminate information on transactions 

reported pursuant to SEA Rule 10c–1a. 

FINRA is proposing to amend the 

Original Proposal to delete the 

requirements in proposed Rules 

6530(a)(2)(X) and 6530(b)(2)(B) related 

to the provision of a unique internal 

identifier for an associated omnibus 

loan. FINRA believes this amendment is 

appropriate, at this time, to facilitate the 

achievement of the initial SLATE 

reporting requirements in a timely 

manner. 

7. Reporting Deadline 

FINRA is proposing to amend the 

Original Proposal to extend the deadline 

for reporting initial covered securities 

loans and loan modifications to SLATE. 

As originally proposed, covered persons 

would have been required to report loan 

information to SLATE by 8:00:00 p.m. 

Eastern Time (‘‘ET’’), with loans that 

were effected or modified after 7:45:00 

p.m. ET or on a Saturday, a Sunday, a 

federal or religious holiday or other day 

on which SLATE is not open at any time 

during that day being reportable by 

8:00:00 p.m. ET the next business day.38

Some commenters expressed concern 

regarding the 7:45:00 p.m. ET loan cutoff time and 8:00:00 p.m. ET reporting 

deadline, including that closing SLATE 

at 8:00:00 p.m. ET would not capture 

certain end-of-day activity, and that a 

15-minute turnaround time (between 

7:45:00 p.m. ET and 8:00:00 p.m. ET) 

would make end-of-day processes 

challenging.39

In Partial Amendment No. 1, FINRA 

is proposing to amend proposed Rule 

6530(a)(1) and (b)(1) to extend the 

reporting deadline to 11:59:59 p.m. ET 

and to change the reporting cut-off time 

in proposed Rule 6530(a)(1) and (b)(1) to 

7:00:00 p.m. ET. Partial Amendment No. 

1 would also make a corresponding 

change to the definition of ‘‘SLATE 

system hours’’ in proposed Rule 6510(i) 

(renumbered as (h)) to specify that the 

SLATE system is open through 11:59:59 

p.m. ET. FINRA believes that these 


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40See Notice, supra note 3. 41See Partial Amendment No. 1; see also, 

Response to Comments, SR–FINRA–2024–007. 42See Partial Amendment No. 1; see also, 

Response to Comments, SR–FINRA–2024–007. 

43See Notice, supra note 3. 

44See Partial Amendment No. 1; see also, 

Response to Comments, SR–FINRA–2024–007. 

45See Notice, supra note 3. 

46See Notice, supra note 3. 

47See Partial Amendment No. 1; see also, 

Response to Comments, SR–FINRA–2024–007. 

proposed amendments to extend SLATE 

system hours are appropriate to provide 

additional time to process SLATE 

submissions at the end of the day. 

FINRA believes that the proposed 

amendment to modify the loan cut-off 

time from 7:45:00 p.m. ET to 7:00:00 

p.m. ET would provide additional time 

to report loans that are effected near the 

end of the day, including time to 

complete any necessary security set up 

in SLATE. 

8. Reporting Agent Supervision 

FINRA is proposing to amend the 

Original Proposal to delete proposed 

Rule 6530(d)(3). As originally proposed, 

Rule 6530(d)(3) would have specified 

that a member relying on a reporting 

agent to report covered securities loan 

information to SLATE has an obligation 

under FINRA Rule 3110 (Supervision) 

to take reasonable steps to ensure that 

the reporting agent is complying with 

SEA Rule 10c–1a and FINRA Rule 6530 

on the member’s behalf.40 Two 

commenters expressed concern with 

this requirement,41 including that it 

shifts back to the covered person the 

reporting compliance burden 

established by SEA Rule 10c–1a and 

would create a reconciliation obligation 

that would be time consuming, costly, 

and operationally intensive.42

In Partial Amendment No. 1, FINRA 

is deleting proposed Rule 6530(d)(3). In 

its oversight of member compliance 

with SEA Rule 10c–1a, in addition to 

reviewing whether members have 

complied with the requirements of SEA 

Rule 10c–1a(a)(2) with respect to the use 

of reporting agents, FINRA also will 

review the timeliness and accuracy of 

SLATE reports submitted by reporting 

agents in light of a reporting agent’s 

obligations under SEA Rule 10c–1a(b) 

and the underlying requirements of SEA 

Rule 10c–1a. After gaining experience 

with the SLATE program, FINRA will 

reevaluate whether any additional 

measures are appropriate. 

9. Loan Transaction Activity and Rate 

Distribution Data 

FINRA is proposing to amend the 

Original Proposal to remove the 

subcategories of volume data from the 

aggregate loan transaction activity to be 

disseminated. Under the Original 

Proposal, in addition to the total 

aggregate volume of securities subject to 

an initial covered securities loan or 

modification to the amount of reportable 

securities loaned reported on the prior 

business day, Rule 6540(c)(1) 

paragraphs (A) through (E) would have 

provided that FINRA would 

disseminate, by the morning of the next 

business day, aggregate loan transaction 

activity, including information broken 

down into several subcategories (e.g., by 

borrower type or whether a loan is an 

open or term loan).43 Some commenters 

expressed concern regarding the 

Original Proposal, including that the 

level of data granularity exceeds the 

discretion provided by the Commission 

with respect to aggregate data, and that 

bucketing data by borrower type, in 

particular, may permit market 

participants to discern individual loan 

amounts that are subject to delayed 

dissemination under SEA Rule 10c– 

1a.44

In Partial Amendment No. 1, FINRA 

is proposing to amend paragraph 

(c)(1)(A) to provide that FINRA will 

disseminate the aggregate volume of 

securities subject to an initial covered 

securities loan or modification to the 

amount of reportable securities loaned, 

reported on the prior business day. 

FINRA is proposing to delete paragraphs 

(c)(1)(B) through (E). FINRA believes it 

is appropriate, at this time, to revise the 

Original Proposal as described and to 

revisit the possibility of enhancing the 

aggregate loan transaction activity in the 

future after gaining experience with the 

impact of disseminating volume data 

and analyzing what additional 

information could be useful while 

continuing to be sensitive to potential 

information leakage concerns. Any 

future amendments to the dissemination 

provisions would be subject to a 

separate proposed rule change with the 

Commission and subject to notice and 

comment. 

FINRA is also proposing to amend 

proposed Rules 6540(a) and (b) to clarify 

that FINRA will disseminate, as part of 

the individual loan transaction data, the 

unique identifier assigned by FINRA to 

the covered securities loan for a loan 

modification ‘‘if reported to SLATE or 

otherwise identified by FINRA.’’ This 

amendment is appropriate because a 

covered person may be unable to report 

a FINRA identifier for a loan 

modification if the FINRA identifier was 

not yet assigned by FINRA—e.g., in the 

case of a same-day return or partial 

return of shares, where the initial 

covered securities loan and the 

modification to the same loan are 

reported to SLATE on T+0. 

In addition, FINRA is proposing to 

amend proposed Rule 6540(c)(2)(A) to 

provide that the loan rate distribution 

statistics for loans collateralized by cash 

will be bucketed by U.S. currency and 

non-U.S. currency, as applicable. In the 

Original Proposal, Rule 6540(c)(2)(A) 

would have provided that FINRA would 

disseminate the highest rebate rate, 

lowest rebate rate, and volume weighted 

average of the rebate rates reported for 

initial covered securities loans 

collateralized by cash and for loan 

modifications collateralized by cash 

(where the loan modification involved a 

change to the rebate rate).45 The 

proposed amendment is appropriate 

because the currency used as collateral 

will impact the rebate rate reported to 

SLATE and, therefore, separating the 

rate information by U.S. currency 

collateral and non-U.S. currency 

collateral will make the disseminated 

information more useful. 

10. De Minimis Loan Transaction 

Activity 

FINRA is proposing to amend the 

Original Proposal to clarify the 

operation of the de minimis exception 

for aggregate loan transaction activity 

and increase the de minimis threshold. 

As originally proposed, Supplementary 

Material .01 to proposed Rule 6540 (De 

Minimis Loan Transaction Activity) 

would have provided that FINRA may 

omit from the aggregate loan activity 

volume information for reportable 

securities for which there were three or 

fewer types of initial covered securities 

loan and loan modification events 

reported to SLATE in total on the prior 

business day.46 Some commenters 

expressed concern regarding the de 

minimis provision, including that the 

threshold of three or fewer loan or loan 

modification events is insufficient to 

effectively prevent information leakage 

and that the application of the de 

minimis exception should be mandatory 

rather than discretionary.47

In Partial Amendment No. 1, FINRA 

is proposing to amend Supplementary 

Material .01 to clarify the operation of 

the de minimis provision and increase 

the threshold. Specifically, FINRA is 

proposing to amend proposed Rule 

6540.01 to clarify that FINRA’s 

application of the de minimis threshold 

will be non-discretionary and to provide 

that FINRA will not include aggregate 

volume information for a security unless 

there were reports submitted to SLATE 

on the prior business day for at least 10 

distinct covered securities loans in the 

reportable security (represented by 


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48FINRA will not have insight into all of the 

relevant loan details necessary to generate the 

statistics described in proposed Rule 6540(c) with 

respect to modifications to loans for which 

reporting was not required pursuant to SEA Rule 

10c–1a(c) at the time the loan was agreed to or last 

modified (i.e., modifications reported to SLATE 

pursuant to SEA Rule 10c–1a(d)(2)). Therefore, the 

daily loan statistics that FINRA will publish will 

only reflect modifications to covered securities 

loans that were previously reported to SLATE. 

49This proposed provision is intended to address 

potential information leakage in circumstances 

where there are multiple reported events associated 

with the same loan on a given day. 

different FINRA-assigned unique loan 

identifiers).48 Therefore, under 

paragraph (c)(1), FINRA would not 

disseminate aggregate volume 

information in a reportable security 

unless there were at least 10 unique 

loans reported to SLATE in the security 

on the prior business day.49

Following are the changes proposed 

in Partial Amendment No. 1, with the 

proposed changes in the original filing 

shown as if adopted. Proposed new 

language in Partial Amendment No. 1 is 

italicized; proposed deletions in Partial 

Amendment No. 1 are in brackets: 

6000. Quotation, Order, and Transaction 

Reporting Facilities 

* * * * * 

6500. Securities Lending and Transparency 

Engine (Slate) 

6510. Definitions 

For the purposes of this Rule 6500 Series, 

the following terms have the following 

meaning: 

[(a) ‘‘Affiliate’’ means an entity that 

controls, is controlled by or is under common 

control with a Covered Person. For the 

purposes of this definition, ‘‘control,’’ along 

with any derivative thereof, means legal, 

beneficial, or equitable ownership, directly or 

indirectly, of 25 percent or more of the 

capital stock (or other ownership interest, if 

not a corporation) of any entity ordinarily 

having voting rights. The term ‘‘common 

control’’ means the same natural person or 

entity controls two or more entities.] 

(a)[(b)] ‘‘Confidential Data Element’’ means 

an item of information that a Covered Person 

must report under SEA Rule 10c–1a(e) and 

FINRA Rule 6530(a)(2)(M)[(O)] through 

(U)[(X)]. 

(b)[(c)] ‘‘Custodian’’ means a Broker or 

Bank that is providing safekeeping or custody 

services as described in Exchange Act 

Section 3(a)(4)(B)(viii)(I)(aa) or (bb) in 

connection with the Covered Securities Loan. 

(c)[(d)] ‘‘Data Element’’ means an item of 

information that a Covered Person must 

report under SEA Rule 10c–1a(c) and FINRA 

Rule 6530(a)(2)(A) through (L)[(N) and (Y)]. 

(d)[(e)] ‘‘Initial Covered Securities Loan’’ 

means a new Covered Securities Loan not 

previously reported to SLATE. 

(e)[(f)] ‘‘Loan Modification’’ means a 

change to any Data Element with respect to 

a Covered Securities Loan (irrespective of 

whether such Covered Securities Loan was 

previously reported to SLATE). 

(f)[(g)] ‘‘Securities Lending and 

Transparency Engine’’ or ‘‘SLATE’’ means 

the automated system developed by FINRA 

that, among other things, accommodates 

reporting and dissemination of loan reports 

where applicable in Covered Securities 

Loans. 

(g)[(h)] ‘‘SLATE Participant’’ means any 

person that reports securities loan 

information to SLATE, directly or indirectly. 

(h)[(i)] ‘‘SLATE System Hours’’ means the 

hours SLATE is open, which are 6:00:00 a.m. 

Eastern Time through 11:59:59[7:59:59] p.m. 

Eastern Time on a business day, unless 

otherwise announced by FINRA. 

(i)[(j)] The following terms shall have the 

meanings set forth in Exchange Act Section 

3(a): ‘‘Bank,’’ ‘‘Broker,’’ ‘‘Dealer,’’ and 

‘‘Clearing Agency.’’ 

(j)[(k)] The following terms shall have the 

meanings set forth in SEA Rule 10c–1a: 

‘‘Covered Person,’’ ‘‘Covered Securities 

Loan,’’ ‘‘Reporting Agent,’’ and ‘‘Reportable 

Security.’’ 

6520. Participation in SLATE 

(a) No Change. 

(b) Reporting Agents 

A SLATE Participant acting as a Reporting 

Agent shall provide FINRA with a list 

naming each Covered Person on whose 

behalf the Reporting Agent is providing 

information to SLATE and shall provide 

FINRA with any updates[changes] to the list 

of such persons by the end of the day on 

which any such change occurs, in the form 

and manner specified by FINRA. 

(c) No Change. 

6530. Reporting Securities Loan Information 

(a) Initial Covered Securities Loans 

(1) When and How Initial Covered 

Securities Loans Are Reported 

For Initial Covered Securities Loans, 

Covered Persons must report the information 

specified in paragraph [Rule 6530](a)(2) of 

this Rule to SLATE, as provided in this 

paragraph (a)(1): 

(A) An Initial Covered Securities Loan 

effected on a business day at or after 12:00:00 

a.m. Eastern Time through 7:00:00[7:45:00] 

p.m. Eastern Time must be reported the same 

day [before 8:00:00]by 11:59:59 p.m. Eastern 

Time; 

(B) An Initial Covered Securities Loan 

effected on a business day after 

7:00:00[7:45:00] p.m. Eastern Time must be 

reported no later than the next business day 

(T+1) [before 8:00:00]by 11:59:59 p.m. 

Eastern Time; or 

(C) An Initial Covered Securities Loan 

effected on a Saturday, a Sunday, a federal 

or religious holiday or other day on which 

SLATE is not open at any time during that 

day (determined using Eastern Time) must be 

reported the next business day (T+1) [before 

8:00:00]by 11:59:59 p.m. Eastern Time. 

(2) Loan Information To Be Reported 

For Initial Covered Securities Loans, each 

SLATE report shall contain the following 

information: 

(A) No Change. 

(B) Security symbol, CUSIP, ISIN, or FIGI, 

or other security identifier[if any]; 

(C) through (D) No Change. 

[(E) The expected settlement date of the 

Covered Securities Loan;] 

(E)[(F)] The name of the platform or venue 

where the Covered Securities Loan was 

effected; 

(F)[(G)] The amount of the Reportable 

Securities loaned; 

(G)[(H)] The type of collateral used to 

secure the Covered Securities Loan; 

(H)[(I)] For a Covered Securities Loan 

collateralized by cash, the rebate rate or any 

other fee or charges; 

(I)[(J)] For a Covered Securities Loan not 

collateralized by cash, the securities lending 

fee or rate, or any other fee or charges; 

[(K) Any other fees or charges;] 

(J)[(L)] The percentage of collateral to value 

of Reportable Securities loaned required to 

secure such Covered Securities Loan; 

(K)[(M)] [For a Covered Securities Loan 

with a specified term, t]The termination date 

of the Covered Securities Loan; 

(L)[(N)] Whether the borrower is a Broker 

or Dealer, a customer (if the person lending 

securities is a Broker or Dealer), a Clearing 

Agency, a Bank, a Custodian, or other person; 

(M) If known, the MPID of the Covered 

Person; 

(N)[(O)] If known, the legal name of each 

party to the Covered Securities Loan (other 

than the customer from whom a Broker or 

Dealer borrows fully paid or excess margin 

securities pursuant to SEA Rule 15c3– 

3(b)(3)); 

(O)[(P)] If known, the CRD Number or 

Investment Adviser Registration Depository 

Number of each party to the Covered 

Securities Loan[, if applicable]; 

(P)[(Q)] If known, the MPID of each party 

to the Covered Securities Loan; 

(Q)[(R)] If known, the LEI of each party to 

the Covered Securities Loan; 

(R)[(S)] If known, whether each party to the 

Covered Securities Loan is the lender, the 

borrower, or an intermediary between the 

lender and the borrower; 

(S)[(T)] If the person lending securities is 

a Broker or Dealer and the borrower is its 

customer, whether the security is loaned 

from the Broker’s or Dealer’s securities 

inventory to a[the] customer of such Broker 

or Dealer; 

(T)[(U)] If known, whether the Covered 

Securities Loan is being used to close out a 

fail to deliver pursuant to Rule 204 of SEC 

Regulation SHO or to close out a fail to 

deliver outside of Regulation SHO; and 

[(V) Whether the Covered Person is the 

lender, borrower or intermediary;] 

(U)[(W)] Where a Covered Person’s daily 

submission includes two or more reports 

related to the same Covered Securities Loan 

(e.g., an Initial Covered Securities Loan and 

a Loan Modification to terminate the Covered 

Securities Loan) and FINRA has not yet 

assigned a unique identifier to the Initial 

Covered Securities Loan, a [The] unique 

[internal] identifier assigned to the Covered 

Securities Loan by the Covered Person 

responsible for reporting the loan to 

SLATE.[;] 

[(X) If the Covered Securities Loan is an 

allocation of an omnibus loan effected 

pursuant to an agency lending agreement, the 

unique internal identifier for the associated 

omnibus loan assigned by the Covered 

Person responsible for reporting the Covered 

Securities Loan to SLATE; and] 


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[(Y) Such modifiers and indicators as 

required by either the Rule 6500 Series or the 

SLATE Participant specification.] 

(3) No Change. 

(4) Reporting Loan Rates Based on a 

Spread to a Benchmark or Reference Rate 

(A) Report the rebate rate or lending fee or 

rate; or 

(B) Report: 

(i) the rebate rate or lending fee or rate as 

of the date the Covered Securities Loan was 

effected; 

(ii) the spread; and 

(iii) the identity of the benchmark or 

reference rate. 

(b) Covered Securities Loan Modifications 

(1) When and How Loan Modifications Are 

Reported 

For Loan Modifications, Covered Persons 

must report the information specified in 

paragraph (b)(2) of this Rule to SLATE, as 

provided in this paragraph (b)(1): 

(A) A Loan Modification effected on a 

business day at or after 12:00:00 a.m. Eastern 

Time through 7:00:00[7:45:00] p.m. Eastern 

Time must be reported the same day [before 

8:00:00]by 11:59:59 p.m. Eastern Time; 

(B) A Loan Modification effected on a 

business day after 7:00:00[7:45:00] p.m. 

Eastern Time must be reported no later than 

the next business day (T+1) [before 

8:00:00]by 11:59:59 p.m. Eastern Time; or 

(C) A Loan Modification effected on a 

Saturday, a Sunday, a federal or religious 

holiday or other day on which SLATE is not 

open at any time during that day (determined 

using Eastern Time) must be reported the 

next business day (T+1) [before 8:00:00]by 

11:59:59 p.m. Eastern Time. 

(2) Loan Modifications—Information To Be 

Reported 

For Loan Modifications, each SLATE 

report shall contain the following 

information: 

(A) The unique identifier assigned by 

FINRA to the Initial Covered Securities Loan, 

or[, if] where a Covered Person’s daily 

submission includes two or more reports 

related to the same Covered Securities Loan 

and FINRA [a unique identifier] has not yet 

[been] assigned a unique identifier to the 

Covered Securities Loan[by FINRA], the 

[unique internal] identifier reported pursuant 

to paragraph (a)(2)(U) of this Rule [assigned 

to the Covered Securities Loan by the 

Covered Person responsible for reporting the 

loan to SLATE]; 

[(B) If the Covered Securities Loan is an 

allocation of an omnibus loan effected 

pursuant to an agency lending agreement, the 

unique internal identifier for the associated 

omnibus loan assigned by the Covered 

Person responsible for reporting the Covered 

Securities Loan to SLATE;] 

(B)[(C)] If known, t[T]he MPID of the 

Covered Person; 

(C)[(D)] The date of the Loan Modification; 

(D)[(E)] The time of the Loan Modification; 

and 

[(F) The expected settlement date for 

modifications to the loan amount (if the 

expected settlement date is a date other than 

the date of the Loan Modification), or the 

effective date for all other Loan Modifications 

(if effective date is a date other than the date 

of the Loan Modification);] 

[(G) Whether the Covered Person is the 

lender, borrower or intermediary;] 

(E)(i)[(H)] If the Loan Modification occurs 

after the Data Elements for such Covered 

Securities Loan are reported to SLATE, and 

results in a change to information previously 

required to be reported to SLATE, the specific 

modification and the specific Data Elements 

being modified, or 

(ii) If the Loan Modification is to a Covered 

Securities Loan for which reporting to SLATE 

was not required on the date the loan was 

agreed to or last modified and results in a 

change to any of the Data Elements, all Data 

Elements as of the date of modification and 

an identifier described in paragraph (a)(2)(U) 

of this Rule.[The modified Data Elements for 

a Loan Modification to a Covered Securities 

Loan previously reported to SLATE or all 

Data Elements for a Loan Modification to a 

Covered Securities Loan that was not 

previously required to be reported to SLATE; 

and] 

[(I) Such modifiers and indicators as 

required by either the Rule 6500 Series or the 

SLATE Participant specification.] 

[(c) Modifiers and Indicators] 

[Append the applicable modifiers or 

indicators as specified by FINRA to all 

SLATE reports.] 

[(1) Exclusive Arrangement 

If the Covered Securities Loan is made 

pursuant to an exclusive arrangement with 

the borrower or intermediary, select the 

appropriate indicator.] 

[(2) Loan to Affiliate 

If the Covered Securities Loan is made to 

an Affiliate of the lender or intermediary, 

select the appropriate indicator.] 

[(3) Unsettled Loan 

If an Initial Covered Securities Loan or a 

modification to the amount of Reportable 

Securities loaned did not settle by the close 

of SLATE System Hours on the expected 

settlement date, select the appropriate 

indicator.] 

[(4) Terminated Loan 

If a Covered Securities Loan has been 

terminated, select the appropriate indicator.] 

[(5) Rate or Fee Adjustment 

(A) If a loan rebate rate or lending fee 

accounts for a billing adjustment or 

correction to amounts previously rebated or 

charged, select the appropriate modifier; or 

(B) If a loan rebate rate or lending fee 

accounts for the value of a distribution or 

other economic benefit associated with the 

Reportable Security, e.g., a corporate action, 

select the appropriate modifier.] 

[(6) Basket Loan 

If a loan rebate rate or lending fee reflects 

a rate or fee involving a basket of at least 10 

unique Reportable Securities for a single 

agreed rate or fee for the entire basket, select 

the appropriate modifier.] 

(c)[(d)] Compliance With Reporting 

Obligations 

(1) No Change. 

(2) No Change. 

[(3) A member relying on a Reporting 

Agent to report Covered Securities Loan 

information to SLATE has an obligation 

under FINRA Rule 3110 to take reasonable 

steps to ensure that the Reporting Agent is 

complying with SEA Rule 10c–1a and FINRA 

Rule 6530 on its behalf.] 

(3)[(4)] If a Covered Person makes a good 

faith determination that it has a reporting 

obligation under SEA Rule 10c–1a [and this 

Rule 6500 Series], the Covered Person or 

Reporting Agent, as applicable, must report 

the Covered Securities Loan as provided in 

this Rule, and if the Reportable Security is 

not entered into the SLATE system, the 

Covered Person or Reporting Agent, as 

applicable, must promptly notify and provide 

FINRA Operations, in the form and manner 

required by FINRA, the information specified 

in Rule 6530(a)(2)(A) and (B), along with 

such other information as FINRA deems 

necessary to enter the Reportable Security for 

reporting through SLATE. 

[••• Supplementary Material: ----------] 

[.01 Intraday Loan Modifications. If a 

Covered Securities Loan previously reported 

to SLATE or a Covered Securities Loan not 

previously reported to SLATE is modified 

multiple times throughout the day, a Covered 

Person must report each Loan Modification 

as set forth in Rule 6530(b).] 

[.02 Changes to the Parties to a Covered 

Securities Loan. With respect to a previously 

reported Covered Securities Loan, following 

the addition or removal of a party required 

to be identified pursuant to Rule 

6530(a)(2)(O), a Covered Person must: (a) 

report the termination of the previously 

reported Covered Securities Loan as a Loan 

Modification pursuant to Rule 6530(b) that 

reflects the date and time the party was 

added or removed and select the Terminated 

Loan indicator; and (b) report an Initial 

Covered Securities Loan pursuant to Rule 

6530(a) that reflects the new parties to the 

loan, if known (other than the customer from 

whom a Broker or Dealer borrows fully paid 

or excess margin securities pursuant to SEA 

Rule 15c3–3(b)(3)).] 

6540. Dissemination of Loan Information 

(a) Next Day Dissemination 

For each Initial Covered Securities Loan 

and Loan Modification reported to SLATE on 

a given business day, no later than the 

morning of the next business day, FINRA 

will make publicly available: 

(1) for an Initial Covered Securities Loan, 

the unique identifier assigned by FINRA to 

the Covered Securities Loan; 

(2) for a Loan Modification, the unique 

identifier assigned by FINRA to the Covered 

Securities Loan if reported to SLATE or 

otherwise identified by FINRA; 

(3)[(2)] the security identifier(s) specified 

in Rule 6530(a)(2)(A) or (B) that FINRA 

determines is appropriate to disseminate; and 

(4)[(3)](A) for each Initial Covered 

Securities Loan, all other Data Elements 

reported to SLATE, except the amount of 

Reportable Securities loaned [and as 

otherwise provided for in paragraph (d) of 

this Rule]; or 

(B) for each Loan Modification reported 

pursuant to Rule 6530(b)(2)(E)(i)[to a Covered 

Securities Loan], the modified Data Elements 

reported to SLATE, except the amount of 

Reportable Securities loaned [and as 

otherwise provided for in paragraph (d) of 

this Rule]; or 

(C) for each Loan Modification reported 

pursuant to Rule 6530(b)(2)(E)(ii)[to a 

Covered Securities Loan that was not 


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50 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

previously required to be reported to 

SLATE], all other Data Elements reported to 

SLATE, except the amount of Reportable 

Securities loaned [and as otherwise provided 

for in paragraph (d) of this Rule]. 

(b) Delayed Dissemination 

For each Initial Covered Securities Loan 

and Loan Modification reported to SLATE, 

20 business days after the date on which the 

Initial Covered Securities Loan was effected 

or the loan [amount] was modified, FINRA 

will make publicly available: 

(1) for an Initial Covered Securities Loan, 

the unique identifier assigned by FINRA to 

the Covered Securities Loan; 

(2) for a Loan Modification, the unique 

identifier assigned by FINRA to the Covered 

Securities Loan if reported to SLATE or 

otherwise identified by FINRA; 

(3)[(2)] the security identifier(s) specified 

in Rule 6530(a)(2)(A) or (B) that FINRA 

determines is appropriate to disseminate; and 

(4)[(3)] the amount of Reportable Securities 

loaned reported to SLATE. 

(c) Daily Loan Statistics 

(1) Aggregate Loan Transaction Activity 

For each Reportable Security for which an 

Initial Covered Securities Loan or Loan 

Modification is reported to SLATE on a given 

business day, no later than the morning of 

the next business day, FINRA will 

disseminate the security identifier specified 

in Rule 6530(a)(2)(A) or (B) that FINRA 

determines is appropriate to disseminate and 

the [aggregate loan activity in the Reportable 

Security, including the: 

(A) ]aggregate volume of securities [(both 

in total and by collateral type)] subject to an 

Initial Covered Securities Loan or 

modification to the amount of Reportable 

Securities loaned, reported on the prior 

business day.[;] 

[(B) aggregate volume of securities (both in 

total and by collateral type) subject to a 

rebate rate or fee modification, reported on 

the prior business day;] 

[(C) aggregate volume of securities subject 

to an Initial Covered Securities Loan or 

modification to the amount of Reportable 

Securities loaned with a specified term, and 

subject to an Initial Covered Securities Loan 

or modification to the amount of Reportable 

Securities loaned without a specified term, 

reported on the prior business day;] 

[(D) aggregate volume of securities subject 

to an Initial Covered Securities Loan or 

modification to the amount of Reportable 

Securities loaned to one or more borrower 

types specified in Rule 6530(a)(2)(N) reported 

on the prior business day; and] 

[(E) the total number of Initial Covered 

Securities Loans and terminated Covered 

Security Loans (both in total and by collateral 

type) reported on the prior business day.] 

(2) Loan Rate Distribution Data 

For each Reportable Security for which an 

Initial Covered Securities Loan or Loan 

Modification is reported to SLATE on a given 

business day, no later than the morning of 

the next business day, FINRA will 

disseminate the security identifier specified 

in Rule 6530(a)(2)(A) or (B) that FINRA 

determines is appropriate to identify the 

relevant Reportable Security and information 

pertaining to the distribution of loan rebate 

rates and lending fees or rates, as applicable, 

including: 

(A) the highest rebate rate, lowest rebate 

rate, and volume weighted average of the 

rebate rates by U.S. currency and non-U.S. 

currency, as applicable, reported for Initial 

Covered Securities Loans collateralized by 

cash and for Loan Modifications 

collateralized by cash (where the Loan 

Modification involved a change to the rebate 

rate); and 

(B) the highest lending fee or rate, lowest 

lending fee or rate, and volume weighted 

average of the lending fees or rates reported 

for Initial Covered Securities Loans not 

collateralized by cash and for Loan 

Modifications not collateralized by cash 

(where the Loan Modification involved a 

change to the lending fee or rate). 

(d) Loan Transaction Information Not 

Disseminated 

FINRA will not disseminate[: 

(1)] any Confidential Data Elements 

reported to SLATE[; and 

(2) any modifier or indicator required by 

either the Rule 6500 Series or the SLATE 

Participant specification that FINRA 

determines shall not be publicly 

disseminated 

••• Supplementary Material: ---------- 

.01 De Minimis Loan Transaction Activity. 

Notwithstanding paragraph (c)(1) of this 

Rule, FINRA will not include [may omit from 

the aggregate loan activity] aggregate volume 

information for a Reportable Security[ies] 

[for] unless [which] there were reports 

submitted to SLATE on the prior business 

day for at least ten distinct Covered 

Securities Loans in the Reportable Security 

(represented by different FINRA-assigned 

unique loan identifiers) [there were three or 

fewer types of Initial Covered Securities Loan 

and Loan Modification events reported to 

SLATE in total on the prior business day]. 

.02 No Change. 

6550. Emergency Authority 

No Change. 

* * * * * 

III. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change, as amended by Partial 

Amendment No. 1, is consistent with 

the Act. Comments may be submitted by 

any of the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (https://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include file number SR– 

FINRA–2024–007 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to file 

number SR–FINRA–2024–007. 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. The Commission will 

post all comments on the Commission’s 

internet website (https://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

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. Copies of the filing also 

will be available for inspection and 

copying at the principal office of 

FINRA. Do not include personal 

identifiable information in submissions; 

you should submit only information 

that you wish to make available 

publicly. We may redact in part or 

withhold entirely from publication 

submitted material that is obscene or 

subject to copyright protection. All 

submissions should refer to File 

Number SR–FINRA–2024–007 and 

should be submitted on or before 

December 6, 2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.50

Stephanie J. Fouse, 

Assistant Secretary. 

[FR Doc. 2024–27223 Filed 11–20–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–101634; File No. SR– 

CBOE–2024–050] 

Self-Regulatory Organizations; Cboe 

Exchange, Inc.; Notice of Filing and 

Immediate Effectiveness of a Proposed 

Rule Change To Amend Its Fees 

Schedule 

November 15, 2024. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 (the 

‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on November 

1, 2024, Cboe Exchange, Inc. (the 


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