03.31.2026

Broker-Dealers Can Pledge Equities to Borrow Securities

03.31.2026
Auerbach Grayson Launches U.S. Equities Trading Business

The SEC order said:

“By this Order, and subject to the conditions discussed below, the Commission will permit broker-dealers that borrow fully-paid or excess margin equity securities from certain types of institutional investors to pledge a basket of Russell 1000 and/or S&P 500 equity securities (“Eligible Equity Collateral”). The Eligible Equity Collateral was selected based on its liquidity, volatility, and market depth. Further, the issuers of Eligible Equity Collateral are U.S. companies with the largest public share and market capitalization. Moreover, there is ample public financial information available about the issuers of Eligible Equity Collateral. By designating this highly liquid collateral as permissible for the purposes of paragraph (b)(3)(iii)(A) of Rule 15c3-3, the Order is consistent with the rule’s objectives, which are designed to ensure that securities borrowings from customers remain fully collateralized.”

Source: SEC

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