SEC Issues Order to Enhance Liquidity in Securities Lending Markets

The U.S. Securities and Exchange Commission (SEC) has issued an order aimed at enhancing liquidity and strengthening risk management in the securities lending markets. The SEC posted on X that this initiative is accompanied by a staff interpretive letter addressed to the Securities Industry and Financial Markets Association (SIFMA) and the International Securities Lending Association (ISLA). The order and the interpretive letter are designed to provide clarity and guidance to market participants, facilitating improved market conditions. This move is part of the SEC's ongoing efforts to ensure the stability and efficiency of financial markets.