The Securities and Exchange Commission has approved Financial Industry Regulatory Authority amendments that will require firms to report to the trade reporting and compliance engine (TRACE) all “Agency Debt Securities” and all primary transactions in securities eligible for TRACE (TRACE-Eligible Securities). The amendments become effective March 1, 2010.
The amendments modify the FINRA Rule 6700 series to expand the definition of TRACE-Eligible Securities to include Agency Debt Securities, which, as amended, are defined as debt securities issued or guaranteed by government agencies or government-sponsored enterprises. Certain securities are expressly excluded from the TRACE-Eligible Security definition, such as U.S. Treasury Securities and asset-backed securities issued by Ginnie Mae, Freddie Mac and Fannie Mae. The amendments also expand the definition of “Reportable TRACE Transaction” to cover primary market transactions in any TRACE-Eligible Security. Several exceptions to the TRACE requirements will exist for certain primary market transactions, such as List or Fixed Offering Price Transactions and Takedown Transactions. The SEC also approved new FINRA Rule 6770, which grants FINRA emergency authority to suspend the reporting and/or dissemination of certain transactions in TRACE-Eligible Securities.
Click here to read Regulatory Notice 09-57.