Background FINRA has been collecting and disseminating fixed income transaction information through TRACE since 2002. Fixed income markets have continued to change dramatically since 2002, becoming more global while an increasing percentage of trades are made on or by electronic trading platforms. With the move to electronic trading and increased trade volume, FINRA has been […]
Posts Tagged ‘TRACE’
What Is Not Considered a TRACE-Eligible Security and What Should Not Be Reported
A TRACE-eligible security does not include a debt security that is issued by a foreign, sovereign government or a money market instrument. A money market instrument is, other than a U.S. Treasury Security, a debt security that at issuance has a maturity of one calendar year or less, or if an agency or government-sponsored enterprise […]
What Information Must Be Included in a TRACE Trade Report? (Part 5 of 6)
Because the purpose of TRACE is to help facilitate transparency in the U.S debt market, each TRACE trade report is required to contain the following information: Committee on Uniform Securities Identification Procedures (CUSIP) number, or if a CUSIP number is unavailable at the time of execution, a similar numeric identifier. Examples include a mortgage pool […]
When and by Whom Should TRACE Transactions Be Reported? (Part 4 of 6)
So far in our 6-part blog series explaining the intricacies of TRACE, we have defined TRACE reporting, detailed the prep work to be done in order to effectively report TRACE transactions, and reviewed considerations for alternative trading systems. Now, for part 4 of the series, we will delve into the details of when and by […]
Considerations for Alternative Trading Systems (Part 3 of 6)
So far in our 6-part blog series explaining the intricacies of TRACE, we have defined TRACE reporting and detailed the prep work to be done in order to effectively report TRACE transactions. Now, we will review considerations for alternative trading systems, before delving into the details of when and by whom transactions are to be […]
Preparing to Report TRACE Transactions (Part 2 of 6)
FINRA member participation in TRACE is mandatory and obligates members to submit transaction reports in TRACE-eligible securities to conform with the Rule 6700 Series. Getting started requires a member to complete a FINRA Transparency Services Participation Agreement (FPA) version 1.4, found on the FINRA website, and then submit the signed form via the FINRA Firm […]
What is TRACE Reporting? (Part 1 of 6)
In my over thirty years of experience in the financial services industry, I have learned a thing or two about completing, reviewing, and filing various types of reports — some of which have extremely tight restrictions and constraints to which the reporter must abide. This blog marks the first of a six-part series that will […]