On January 9, the Financial Industry Regulatory Authority issued a Notice to remind its members that they should not report auction transactions in US Treasury securities—including auction awards to either direct or indirect bidders—to the Trade Reporting and Compliance Engine (TRACE), as these transactions are excluded from the TRACE reporting requirements under FINRA Rule 6730(e)(8). Similarly, the delivery of securities after the auction by a FINRA member to the indirect bidder that represents an auction award also should not be reported to TRACE. FINRA advises that members that have erroneously reported such auction transactions must promptly cancel or reverse those transactions reports.
The Notice is available here.
