Exam Alert: FINRA amends TRACE rules for TBA transactions

A To Be Announced (TBA) transaction is a transaction in an Agency Pass-Through Mortgage-Backed Security. Effective November 5, 2012, TRACE rules and dissemination protocols regarding TBA transactions will be changed in the following ways… Continue reading

A To Be Announced (TBA) transaction is a transaction in an Agency Pass-Through Mortgage-Backed Security.  Effective November 5, 2012, TRACE rules and dissemination protocols regarding TBA transactions will be changed in the following ways:

-FINRA will disseminate information on TBA transactions immediately after receiving a transaction report.

-TBA transactions for which good delivery may be made (TBA transactions GD) will be disseminated subject to a $25 million dissemination cap.

-TBA transactions in products that are not traded for good delivery (TBA transactions NGD) will be disseminated subject to a $10 million dissemination cap.

-TBA transactions GD must generally be reported within 45 minutes of execution.

-TBA transactions NGD must generally be reported within 120 minutes of execution.

Effective May 11, 2013, the reporting window for TBA transactions will be reduced to 15 minutes for TBA transactions GD and to 60 minutes for TBA transactions NGD.

Source: FINRA Regulatory Notice 12-26

This alert applies to the Series 7, Series 24, and Series 62.

Leave a Reply

Your email address will not be published. Required fields are marked *