TRACE

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 Provides Information to the Public on Dark Pool Transactions and 144A Transactions

On June 2, 2014, FINRA began providing information to the investing public about the transactions that occur on alternative trading systems (ATSs), including “dark pools.” On June 30, 2014, FINRA began providing information to the investing public about 144A transactions in corporate debt. Continue reading

On June 2, 2014, FINRA began providing information to the investing public about the transactions that occur on alternative trading systems (ATSs), including “dark pools.” Investors can see the total shares traded each week at each ATS. The information is available for free to non-professionals at FINRA’s website. Professionals must purchase a subscription to access the data.

On June 30, 2014, FINRA began providing information to the investing public about 144A transactions in corporate debt. 144A transactions are resales of corporate debt securities to large institutions called qualified institutional buyers (QIBs). Nearly 20 percent of the trading volume in corporate debt securities were 144A transactions in the first quarter of 2014. 144A issues are often foreign IPOs.

Information on 144A transactions will be disseminated through the Trade Reporting and Compliance Engine (TRACE) and through FINRA’s Market Data Center. The standards for dissemination will be the same as for non-144A transactions: a dissemination cap of $5 million for investment-grade corporate debt transactions, and a dissemination cap of $1 million for high-yield corporate debt transactions. 144A transactions are also subject to the same 15 minute reporting requirement as non-144A corporate debt transactions.

This alert applies to the Series 7, Series 24, Series 62, Series 79, and Series 82.

Sources:
FINRA Makes Dark Pool Data Available Free to the Investing Public
FINRA Brings 144A Corporate Debt Transactions Into the Light
FINRA Shines More Light on Some Private Bond Trades

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

-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.

Exam Alert: TRACE data feeds to include BSYM

Effective July 25, 2012, FINRA will update the Agency Debt Trade Dissemination Service (ATDS) and the Bond Trade Dissemination Service (BTDS) data feeds to include the BSYM (Bloomberg Symbol) for transactions in fixed income securities. The Web API for Securitized Products will also include the BSYM. Continue reading

The BSYM is a twelve-digit alphanumeric identifier for securities that is assigned by Bloomberg. Note that the BSYM only available for “data receipt processing purposes” on TRACE (Trade Reporting and Compliance Engine). The BSYM may not be used to report trades in fixed income securities to TRACE.

Sources:

TRACE Data Changes (TRACE Notice)

Bloomberg Press Release

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

Exam Alert: FINRA amends TRACE reporting requirements, moves trade processing onto MPP

The SEC has approved amendments to FINRA’s reporting requirements for transactions in TRACE-eligible securities other than asset-backed securities. These amendments are associated with FINRA plans to move trade processing for TRACE-eligible securities that are not currently on the multi product platform (MPP) onto the MPP. Continue reading

-Firms can report the actual date of execution for transactions executed on non-business days.

-Firms must report the size of a transaction as the total par value or principal value traded.

-Firms must report the total dollar amount of the commission.

-Firms must report the date of settlement.

The amendments and the platform migration will take effect February 6, 2012.

Source: FINRA Regulatory Notice 11-53

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

Exam Alert: TRACE pilot program for reporting asset-backed securities transactions to end

On November 18, 2011, a TRACE pilot program for reporting transactions in asset-backed securities will end. This shifts the old next-day reporting requirement to the new same-day reporting requirement for transactions in asset-backed securities that are executed before 5 PM ET. Continue reading

Source: Trade Reporting Notice – 11/7/11

Relevant to the Series 62 and the Series 24.

Exam Alert: SEC approves amendments to FINRA TRACE transaction reporting rules

The SEC has approved amendments to transaction reporting rules for FINRA’s TRACE system. Effective May 16, 2011, these amendments cover several Continue reading

The SEC has approved amendments to transaction reporting rules for FINRA’s TRACE system. Effective May 16, 2011, these amendments cover several specific changes. Some of these changes address the structure of the text of the rules, as well simplifying definitions and reporting requirements. The changes add alternative reporting requirements and notification requirements for certain asset-backed securities transactions. They also add the Financial Information eXchange (FIX) as a method to report transactions to TRACE.

http://www.finra.org/Industry/Regulation/Notices/2011/P123566