# 2026-06365: SEC Eases Collateral Rules for Security Borrowing 2026-06365, Order Regarding the Collateral Broker-Dealers May Pledge When Borrowing Customer Securities, is a Federal Register notice from Securities and Exchange Commission published 2026-04-02, effective 2026-03-30; PRIA reads it as touching household money (as of 2026-06-08). - Canonical: https://policyrisk.com/federal-register/2026-06365 - As of: 2026-06-08 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Document number: 2026-06365 - Title: Order Regarding the Collateral Broker-Dealers May Pledge When Borrowing Customer Securities - Type: Notice - Agencies: Securities and Exchange Commission - Citation: 91 FR 16770 - Published: 2026-04-02 - Effective: 2026-03-30 - Comments close: not stated - Significant: no - Touches household money: yes - Regulation identifier numbers: none - Last updated: 2026-06-08 ## In one line SEC Eases Collateral Rules for Security Borrowing ## Summary The SEC just gave broker-dealers more freedom on what they can use as collateral when borrowing customer securities, like stocks. This change mainly affects broker-dealers and big investors, letting them use new types of collateral beyond just cash or government bonds. The new rules kick in soon and aim to keep things safe while making borrowing smoother and possibly saving money on borrowing costs. ## Effects PRIA read - Broker-Dealers May Pledge Large-Index Stocks: benefit, medium. As of March 30, 2026, broker-dealers that borrow fully-paid or excess-margin equity securities from certain institutional lenders may pledge a diversified basket of Russell 1000 and/or S&P 500 equity securities (including unleveraged ETFs composed of those indices) as collateral. This permission ap… - Who Counts As Qualified Institutional Lender: cost, medium. The Order defines a "Qualified Institutional Securities Lender" as (1) a qualified institutional buyer under Rule 144A, (2) an entity that invests at least $100,000,000 of third-party securities on a discretionary basis, or (3) a principal lender represented by a bank agent with at least $100,000,0… - Extra Over-Collateralization Required: cost, medium. When pledging Eligible Equity Collateral, broker-dealers must provide collateral that exceeds the Rule 15c3-3 minimum (100%) by 1% if the borrowed securities are denominated in euro, British pound, Swiss franc, Canadian dollar, or Japanese yen, or by 5% if denominated in another currency. An equity… - Five-Business-Day Cure Window: cost, low. If a lender or an equity security stops meeting the Order's eligibility requirements, the lender or security remains treated as eligible for five business days. By the end of the fifth business day, the broker-dealer must substitute other collateral that complies with paragraph (b)(3) of Rule 15c3-… - Custody and Holding Location Requirement: cost, low. Eligible Equity Collateral must be held at a bank (as defined in section 3(a)(6) of the Exchange Act) or at a broker-dealer. Broker-dealers may reasonably rely on representations from the lender or its agent about whether this custody condition is satisfied. - Concentration, Diversification, Daily Mark-to-Market: cost, low. Broker-dealers and Qualified Institutional Securities Lenders must agree to maintain concentration and diversification standards for pledged Eligible Equity Collateral, and the value of loaned securities and collateral must be marked to market daily under paragraph (b)(3) of Rule 15c3-3. These meas… - Order Adds Liquidity, Reduces Operational Risk: benefit, medium. The Commission states that designating Eligible Equity Collateral will add liquidity to the securities lending markets and reduce operational risk by allowing broker-dealers to directly use Eligible Equity Collateral as collateral for securities loans. The Order is presented as consistent with inve… ## Related documents - [2026-20466](https://policyrisk.com/federal-register/2026-20466): Adviser and Regulated Fund Custody Rules; Crypto Custody Rules, 2026-10-06 - [2026-19260](https://policyrisk.com/federal-register/2026-19260): Rescission of Rule 14a-8's Federal Regulation of Shareholder Proposals and Amendments to Rule 14a-4, 2026-09-21 - [2026-18424](https://policyrisk.com/federal-register/2026-18424): Political Contributions by Certain Investment Advisers, 2026-09-10 - [2026-18190](https://policyrisk.com/federal-register/2026-18190): Transfer Agent Rules, 2026-09-04 - [2026-17183](https://policyrisk.com/federal-register/2026-17183): Regulation Crypto Assets, 2026-08-21 - [2026-12163](https://policyrisk.com/federal-register/2026-12163): The Trade-Through Rule and Locked and Crossed Markets Provisions of Regulation NMS, 2026-06-17 ## Sources - [2026-06365 on federalregister.gov](https://www.federalregister.gov/documents/2026/04/02/2026-06365/order-regarding-the-collateral-broker-dealers-may-pledge-when-borrowing-customer-securities) - [2026-06365 as published (PDF)](https://www.govinfo.gov/content/pkg/FR-2026-04-02/pdf/2026-06365.pdf) ## Related - [Previous: 2026-06364, Notice of Inventory Completion: Florida Department of State, Tallahassee, FL](https://policyrisk.com/federal-register/2026-06364) - [Next: 2026-06366, Whaling Provisions; Aboriginal Subsistence Whaling Quotas](https://policyrisk.com/federal-register/2026-06366) - [All Federal Register documents](https://policyrisk.com/federal-register) Source: PRIA, https://policyrisk.com/federal-register/2026-06365 (as of 2026-06-08).