The Securities and Exchange Commission has passed a rule change, which will clarify the net capital treatment of certain stock loan transactions processed via the Options Clearing Corporation. Under SEC rules regulating securities lending, broker-dealers are required to take a capital charge associated with collateral posted in certain stock borrow transactions. As per the rule change, firms will not be required to take a deduction from net capital for stock loan transactions while participating in OCC’s Stock Loan/Hedge or Market Loan programs. The collateral related to the loaned stock will be secured and offset in OCC’s margin system.
Click here for the release from Market Wire.
