Wu Blockchain has learned that the SEC Division of Trading and Markets issued a no-action letter, approving the requests from ISLA and SIFMA. This allows adjustments to the reserve formula under the Securities Exchange Act. Brokers can now directly use customer margin stocks (limited to Russell 1000 or S&P 500 constituent stocks) as collateral to borrow stocks for covering customer short positions or settlement failures, and record the equivalent debit in Item 11 of the reserve formula. This move aims to eliminate the cumbersome 'cash acquisition and re-collateralization' double transaction process, reduce operational risks, and enhance liquidity in the securities lending market. https://(wublock123.com)/news/sec-approves-isla-sifma-request-brokers-use-customer-equity-securities-collateral-58859