The Financial Industry Regulatory Authority has filed with the Securities and Exchange Commission a proposed rule change to amend the FINRA Rule 6700 Series (except for Rule 6740) and FINRA Rule 7730 to designate asset-backed securities, mortgage-backed securities and other similar securities (ABS) as Trade Reporting and Compliance Engine (TRACE) Eligible Securities. The proposed rules establish reporting, fee and other requirements relating to such securities. To incorporate ABS in TRACE, FINRA proposes amendments to Rule 6710, Rule 6730, Rule 6750, Rule 6720, Rule 6760 and Rule 7730. FINRA’s proposal only contemplates collecting ABS transaction data as an initial matter. After a period of collection and analysis, FINRA would determine whether public dissemination of ABS data would also be appropriate.

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