The Financial Industry Regulatory Authority (FINRA) has proposed the adoption of a policy to provide for public access to historic transaction-level TRACE data, and the amendment of NASD Rule 7030 to establish fees to offset the costs of developing and maintaining the Historic TRACE database.
TRACE data is a complete database of transaction-level pricing information on the over-the-counter U.S. corporate bond market. To date, FINRA has only made available to the public aggregated statistics culled from the disseminated and non-disseminated TRACE transaction information in a manner designed to protect the transaction-level non-disseminated data from being ascertained. FINRA now proposes to provide access to historic transaction-level TRACE data, other than Rule 144A trades.
Historic TRACE data to be made available will include basic transaction information such as price, date and time of execution, will include transactions not previously made available and yield along with actual trade volumes rather than capped volumes previously available. The data will be provided via quarterly files or reports. Any data released will be aged at least 18 months in response to commenter concern over the use of current information to identify current trading, positioning or strategies of market participants. FINRA has proposed the amendment of NASD Rule 7030 to impose a fee structure on users of Historic TRACE data to offset the costs of developing and maintaining the database. Fees will vary depending on the user’s status as a professional, tax-exempt organization or non-professional.