Exam Alert: FINRA Changes TRACE Rules Regarding Trades in Asset-Backed Securities and Reduces Reporting Times

Effective April 27, 2015, FINRA will revise the definition of “asset-backed security” under its rules. Asset-backed securities will be required to be reported no later than 45 minutes from the time of execution, with minor exceptions. Continue reading

Effective April 27, 2015, FINRA will revise the definition of “asset-backed security” under its rules. The new definition will exclude mortgage-backed securities, certain SBA-backed securities, and collateralized debt, loan, and bond obligations. Dissemination of trades in asset-backed securities will be limited to this more narrow group of securities, but will include additional types of transactions. These transactions include Rule 144A transactions, list or fixed offering price transactions, and takedown transactions.

Asset-backed securities will be required to be reported no later than 45 minutes from the time of execution, with minor exceptions for transactions executed shortly before the TRACE system closes and when the TRACE system is closed.

Source: FINRA Regulatory Notice 14-34: SEC Approves Amendments to Disseminate Additional Asset-Backed Securities Transactions and to Reduce the Reporting Time for Such Transactions

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

Exam Alert: FINRA modifies TRACE trade dissemination and reporting rules

Effective July 22, 2013, FINRA will alter its rules for reporting and disseminating certain trades in mortgage-backed securities and asset-backed securities. Continue reading

Effective July 22, 2013, FINRA will alter its rules for reporting and disseminating certain trades in mortgage-backed securities and asset-backed securities. The transactions must be reported within 120 minutes of execution during a pilot period that lasts until January 20, 2014 – after the pilot period ends, they must be reported within 60 minutes. A new dissemination method for pool transactions will include various pieces of information about the pool, such as the weighted average coupon.

Source: FINRA Regulatory Notice 12-56: SEC Approves Amendments to TRACE Rules and Dissemination Protocols to Disseminate Specified Pool Transactions and SBA-Backed ABS Transactions and to Reduce the Time to Report Such Transactions

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

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.