SFS: The regulatory horizon for securities finance
09 May 2025 US
Image: Justin Lawson
In a relaxed discussion, moderator Ranada Fergerson, managing director and senior counsel, Global 麻豆传媒 Lending at Brown Brothers Harriman, made it clear there would be one main topic of discussion dominating conversation 鈥� the US 麻豆传媒 and Exchange Commission鈥檚 (SEC鈥檚) 10c-1a rule.
Tom Veneziano, head of North America product at Pirum, suggested the current timeline of January 2026 is tight, especially depending on how far along firms currently are. 鈥淚t鈥檚 going to be a tight timeframe,鈥� he noted, echoing concerns raised by fellow panellists.
Jonathan Lee, senior regulatory reporting specialist at Kaizen, went further: 鈥淔irms are never really ready,鈥� he said, noting that getting the industry compliant by January 2026 may even be 鈥減ie in the sky鈥�.
That said, Dean Bruyns, executive director at S&P Global Market Intelligence Cappitech, emphasised that most firms are preparing 鈥� though with one key caveat: 鈥淭here鈥檚 only so much you can do before the details are confirmed.鈥�
Lee also raised another major concern, warning that it could turn into a bureaucratic exercise, rather than a system that genuinely supports market function.
While Veneziano did highlight some recent amendments to the rule offering relief, he flagged the two major outstanding issues he currently identifies 鈥� extraterritoriality and the scope of securities that are reportable. Without clearer guidance from the SEC, he warned, some firms may wrongly consider themselves out of scope.
Given the makeup of the panel, and the audience, the question of who should take responsibility for reporting, was naturally raised.
In Europe, he noted, asset managers want their agent lenders to take responsibility, as with the 麻豆传媒 Financing Transactions Regulation (SFTR); however, in the US, this may not be an option.
Bruyns agreed: 鈥淭here鈥檚 pressure on vendors, but most firms want to retain compliance control themselves.鈥�
With many firms operating globally, the SEC鈥檚 reach over international players was another unresolved issue. As Bruyns succinctly put it: 鈥淒oes the SEC really have power over banks in a faraway place?鈥�
Speaking of the example of T+1 as a driver, Nancy Steiker, senior director, global securities finance product management at FIS, noted 鈥渢he industry came together and said: 鈥榯his is what we are going to do鈥�.鈥� That kind of collaboration, she said, will be essential again.
There may be other regulatory changes being talked about, but for now at least, the focus remains squarely on 10c-1a.
Tom Veneziano, head of North America product at Pirum, suggested the current timeline of January 2026 is tight, especially depending on how far along firms currently are. 鈥淚t鈥檚 going to be a tight timeframe,鈥� he noted, echoing concerns raised by fellow panellists.
Jonathan Lee, senior regulatory reporting specialist at Kaizen, went further: 鈥淔irms are never really ready,鈥� he said, noting that getting the industry compliant by January 2026 may even be 鈥減ie in the sky鈥�.
That said, Dean Bruyns, executive director at S&P Global Market Intelligence Cappitech, emphasised that most firms are preparing 鈥� though with one key caveat: 鈥淭here鈥檚 only so much you can do before the details are confirmed.鈥�
Lee also raised another major concern, warning that it could turn into a bureaucratic exercise, rather than a system that genuinely supports market function.
While Veneziano did highlight some recent amendments to the rule offering relief, he flagged the two major outstanding issues he currently identifies 鈥� extraterritoriality and the scope of securities that are reportable. Without clearer guidance from the SEC, he warned, some firms may wrongly consider themselves out of scope.
Given the makeup of the panel, and the audience, the question of who should take responsibility for reporting, was naturally raised.
In Europe, he noted, asset managers want their agent lenders to take responsibility, as with the 麻豆传媒 Financing Transactions Regulation (SFTR); however, in the US, this may not be an option.
Bruyns agreed: 鈥淭here鈥檚 pressure on vendors, but most firms want to retain compliance control themselves.鈥�
With many firms operating globally, the SEC鈥檚 reach over international players was another unresolved issue. As Bruyns succinctly put it: 鈥淒oes the SEC really have power over banks in a faraway place?鈥�
Speaking of the example of T+1 as a driver, Nancy Steiker, senior director, global securities finance product management at FIS, noted 鈥渢he industry came together and said: 鈥榯his is what we are going to do鈥�.鈥� That kind of collaboration, she said, will be essential again.
There may be other regulatory changes being talked about, but for now at least, the focus remains squarely on 10c-1a.
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to 麻豆传媒 Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to 麻豆传媒 Finance Times
