Provable Markets Position Statement on SEC Rule 10c-1a

On 13 October 2023, the Securities and Exchange Commission (SEC) adopted the Rule 10c-1a under the Securities Exchange Act of 1934. The final Rule, which was first published for commentary on 18 November 2021, will require reporting covered securities loans to a Registered National Securities Association (RNSA). The new rule furthermore requires that the RNSA make certain information it receives available to the public, including daily information pertaining to the aggregate transaction activity and distribution of loan rates for each reportable security, and delayed data on volumes. The Financial Industry Regulatory Authority (FINRA) is currently the only RNSA.

“Provable Markets applauds the Commission’s efforts to increase transparency and efficiency in the US securities lending market. We also recognize that the new Rule will have a significant technological, operational, and financial impact on market participants at a time when the industry is already  preparing for compliance with T+1, Basel III Endgame, and other regulatory advancements. Our fully integrated solution streamlines a significant amount of both existing and looming operational and economic burdens, and we will continue to promote interoperability and collaboration with the broader ecosystem where further efficiencies can be derived.

- Matt Cohen, CEO

As a FINRA Broker-Dealer and operator of an SEC registered Alternative Trading System (ATS), Aurora, for Securities Finance, Provable Markets has been and is ready to assist ALL market participants for 10c-1a compliance today as a Reporting Agent as defined in the final rule:

  • All transactions executed on Aurora or done-away, can automatically be reported to FINRA on behalf of covered persons and covered securities loans with the 10c-1a required data fields

  • Participants and vendors can connect seamlessly with our flexible APIs or our easy-to-navigate web interface for transaction submission, modification, and record-keeping

Additional operational benefits of Aurora include:

  • Vertical integration with DTCC to offer seamless execution, settlement, and post-trade lifecycle management

  • Industry First Central Orderbook allowing previously untenable automation opportunities

  • Real-time Position and Lifecycle Management eradicating reconciliation, contract compare, and other operational breaks

  • Intelligent Recall & Return Management delivering long needed operational efficiencies for T+1 compliance

  • NSCC SFT Clearing Access driving significant reductions in RWA and Balance Sheet

  • A Modern Architecture with Flexible APIs for interoperability and STP

Contact us today at sales@provablemarkets.com to schedule a demo or review our live API specifications.