The U.S. Securities and Exchange Commission issued a temporary exemptive order that extends by two years the compliance dates for Rule 10c-1a on securities lending reporting and Rule 13f-2 on short position and short activity reporting. In a statement accompanying the action, Commissioner Caroline A. Crenshaw criticised the length of the extension, arguing it risks delaying implementation of transparency measures adopted in 2023. Rule 10c-1a requires covered persons to provide specified information on covered securities loans, within defined time periods, to a registered national securities association, and Rule 13f-2 requires institutional investment managers meeting specified thresholds to report short position and short activity data for equity securities on Form SHO. The statement links the extension to litigation in which the Fifth Circuit, on August 25, 2025, largely rejected industry challenges but remanded the rules without vacating them for the SEC to analyse the rules’ cumulative economic impact and consider further comments; the order also cites time for “further appropriate actions,” including possible amendments to the rules. Crenshaw stated that, because the court did not vacate the rules, they are already effective, and she urged that any future changes be handled through separate notice-and-comment rulemaking rather than extended compliance delays.
U.S. Securities & Exchange Commission 2025-12-03
U.S. Securities and Exchange Commission grants two-year compliance extensions for securities lending and short sale reporting rules
The U.S. Securities and Exchange Commission issued a temporary exemptive order extending compliance dates for Rule 10c-1a on securities lending reporting and Rule 13f-2 on short position reporting by two years. Commissioner Caroline A. Crenshaw criticized the extension, citing risks to transparency measures adopted in 2023. The extension follows a Fifth Circuit decision remanding the rules for further economic impact analysis.