Exam Alert: FINRA launches data feed for securitized products, gives reminder about TRACE changes

Effective November 5, 2012, FINRA will launch the Securitized Products Dissemination Service (SPDS), which will act as a data feed for TRACE-eligible securitized products. FINRA also reminds firms of the changes to certain trade reporting and dissemination requirements set to take effect November 5, 2012. Continue reading

Effective November 5, 2012, FINRA will launch the Securitized Products Dissemination Service (SPDS), which will act as a data feed for TRACE-eligible securitized products.  SPDS will provide real-time last sale data and other transaction information.  SPDS, in its initial implementation, will only disseminate information for transactions in agency pass-through mortgage-backed securities that are traded to be announced (TBA).

FINRA also reminds firms of the changes to certain trade reporting and dissemination requirements set to take effect November 5, 2012.  These changes apply to transactions in TRACE-eligible securities that are agency pass-through mortgage-backed securities that are traded to be announced (TBA transactions).  For additional details, please see the prior exam alert on this change.

Source: Amendments to TRACE Reporting Requirements and Dissemination of Agency Pass-Through Mortgage-Backed Securities Traded To Be Announced

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

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.