United States SEC Chairman Paul S. Atkins Issues Statement on Court Ruling Affecting Rule 10c-1a and Rule 13f-2

On 5 September 2025, the United States Securities and Exchange Commission (US SEC) Chairman Paul S. Atkins issued a statement following a United States Court of Appeals ruling on two 2023 rulemakings. The rules, Rule 10c-1a on securities lending reporting and Rule 13f-2 and Form SHO on short position reporting, were remanded by the Court for further economic analysis. While the Court did not vacate the rules, it found that the US SEC had failed to properly consider cumulative economic impacts. Chairman Atkins confirmed that staff have been directed to re-evaluate the rules and prepare recommendations, including possible changes and compliance date adjustments. Temporary exemptions remain in place, with compliance deadlines beginning in January 2026.

Chairman Paul S. Atkins stated: “Although the Court did not vacate the rules, the Court held that the Commission had not properly considered their cumulative economic impact and remanded them to allow the Commission to consider and quantify the cumulative economic impact of the rules.”

He added: “I have directed Commission staff to evaluate the rules in light of the opinion and make recommendations for appropriate Commission action, including potential changes to the rules and adjustments to the related compliance dates.”

Background: Court ruling and Rules

1. October 2023: US SEC adopted Rule 10c-1a (securities loans) and Rule 13f-2 (short sale reporting with Form SHO).
2. 25 August 2025: Fifth Circuit Court of Appeals in National Association of Private Fund Managers v. SEC held the Commission had not fully analysed cumulative costs.
3. 5 September 2025: Chairman Atkins issued a statement acknowledging the ruling and directing staff review.

Compliance Deadlines

Regulatory Impact and Commentary

The Court’s decision does not strike down the rules but forces the US SEC to quantify and justify their combined economic impact. This raises immediate uncertainty for market participants preparing for new reporting regimes in securities lending and short sales.

Chairman Atkins’ directive signals a willingness to adjust rules or timelines if cumulative burdens prove excessive. For firms, this means compliance strategies may need to remain flexible until the re-evaluation is complete.

In plain terms, the reporting rules are alive but under review. The US SEC will revisit their economic justification, but registrants should prepare for phased compliance beginning in 2026 unless changes are announced.

(Source: https://www.sec.gov/newsroom/speeches-statements/atkins-2025-rule10c1aandrule13f-090525)