As financial regulators continue to ramp up their scrutiny and new SEC leadership prepares to take the helm, 2025 promises significant shifts in the regulatory reporting landscape – and a new standard of what constitutes compliance. Over the past year, we’ve been reminded time and again of the importance of data completeness and accuracy, with comparative requirement proposals embedded across the SEC, FINRA, the Fed and the OCC.
For the financial services players left to navigate these challenges, it’s become essential to take a long view when considering both their regulatory reporting tools and the way they engage with regulators and other stakeholders. To continue thriving, these firms must stay informed, anticipate implementation challenges and develop robust strategies for compliance with the most complex regulations.
As we begin the new year, let’s examine some key upcoming regulatory priorities, their broader implications for the industry and how firms can remain compliant in 2025 and beyond.
SEC Rule 13f-2, the commission’s highly anticipated updated short position reporting requirements, took effect on January 2, 2025. These mandates, which call for detailed reporting on short positions just 14 days after the end of each month, aim to provide greater transparency into short sale activities and mitigate associated risks. Firms must now evaluate their existing internal reporting systems and prepare accordingly to ensure readiness for the expanded requirements of 13f-2 and the corresponding Form SHO.
Another regulatory priority will be SEC Rule 10c-1a, which requires detailed reporting on securities lending activities to enhance market oversight and efficiency. To meet these requirements, firms must report information about securities loans to a registered national securities association, or RNSA, further emphasizing the need for accurate, timely submissions. 10c-1a is expected to go live in early 2026, as is FINRA’s 6500 Series SLATE proposal, also focused on securities reporting. That means the industry has just over 12 months to analyze, build, integrate and test a reporting solution to ahead of go-live.
Then there’s one of the most talked-about topics in the regulatory spotlight: crypto. With the market expanding exponentially and performing well to close out the year, we can expect to see digital asset regulation intensify in the year ahead. Areas of focus are likely to include addressing fraud, eliminating market manipulation and promoting clarity in this rapidly developing asset class. Compared to other global jurisdictions, the US has taken a passive approach to crypto regulation. The new administration in Washington DC is expected to be more crypto-friendly than previous ones, so it stands to reason that the incoming regulators will consider adopting best practices from other jurisdictions to increase efficiency and solidify the US as a leading player on the world stage.
Yet another regulation that will be top of mind is SEC Rule 605 on best execution reporting. Rule amendments that expand the scope of reporting disclosures, coverage and calculations are already approved to go live in 2025. This will require a far more granular level of data analysis to support regulators’ efforts to promote execution quality.
Topics like anti-money laundering (AML) and bad actor money transferring will also take centerstage in 2025, with regulators set to leverage newly enhanced Consolidated Audit trail (CAT) and Customer Account Information Sharing (CAIS) data for trade surveillance and related investigations. There’s also the potential for new SEC leadership and the incoming presidential administration to reshape in-flight proposals or introduce unexpected ones. While firms should adopt a status-quo approach at the outset, they should remain prepared for uncertainty in regulatory enforcement or shifts that could impact strategic compliance.
Leveraging Market Expertise for Streamlined Compliance
These priorities make it clear: satisfying today’s regulators requires unparalleled data accuracy, detailed, complete reports and a commitment to identifying bad actors. Market participants require robust technology and compliance infrastructures to ensure effective data monitoring and collection – otherwise, they run the risk of monetary fines and reputational damage.
Historically, firms have used various siloed systems for different regulations, often with entire teams dedicated to each framework. In response to the intensifying regulatory scrutiny, we’ve observed a clear industry trend toward consolidating reporting systems to increase efficiency, minimize costs and improve cross-regulation data analysis. Factors such as subject-matter expert turnover and budget constraints have only emphasized the need to move away from costly bespoke solutions, which typically require significant resources to maintain. This standardization and consolidation can unlock unprecedented speed and scalability for firms looking to grow while remaining compliant.
Leveraging a third-party vendor solution is one of the surest ways firms can achieve data accuracy and streamline compliance processes while keeping pace with regulatory complexity. An experienced partner can provide unbiased interpretations and validations of compliance data and arm market participants with systems that adapt to growing regulations without internal limitations. The right provider can also tap into cross-industry and multi-asset synergies to promote best practices for accurate monitoring and reporting on a holistic level. Finally, working with an independent provider signals diligence and rigor in regulatory reporting.
n-Tier’s configurable solutions, like our Compliance Workbench platform, offer flexibility to navigate today’s complex regulatory landscape, including the latest rules and amendments. Our broad industry perspective enables us to uncover trends and interpret data with the utmost accuracy, and we pride ourselves on our expertise in regulatory intersections and cross-comparisons to streamline compliance processes. When working with our tailored reporting solutions, market participants get all the tools and information they need to focus on strategic operations and improve their compliance posture, giving them an edge in a highly competitive market.
As we head into 2025, it’s clear that firms must make proactive technology investments and rise to the regulatory challenges that will emerge – or face the consequences. The bottom line: in our data-driven world, effective regulatory compliance hinges on resilient infrastructure for monitoring and reporting. Strategic collaboration with a trusted vendor can support ongoing compliance through streamlined operations and optimal use of resources, ensuring your firm is well-positioned to efficiently navigate future challenges.
For many firms, n-Tier’s configurable solutions have become indispensable for navigating complex regulatory landscapes. Want to learn more about how we can support your compliance efforts in the new year and beyond? Email us at sales@ntierfs.com today.
