In Regulatory Notice 22-17, FINRA is soliciting
comment on a proposal to amend Rule 6730 to reduce the Trade
Reporting and Compliance Engine (TRACE) trade reporting timeframe
for transactions in all TRACE-Eligible Securities that currently
are subject to a 15-minute reporting timeframe.
Specifically, members would be required to submit a report to TRACE
as soon as practicable, but no later than one minute from the time
of execution, for transactions in corporate bonds, agency debt
securities, asset-backed securities and agency pass-through
mortgage-backed securities traded to-be-announced for good
delivery.
FINRA found that 81.9% of trades in relevant TRACE-eligible securities were reported within one minute of execution. In light of technological advances in the 18 years since FINRA adopted the 15-minute reporting requirement, particularly the increase in electronic trading, and the potential transparency benefits of more timely trade reporting, FINRA is seeking comment on whether it is appropriate at this time to reduce the trade reporting timeframe for these securities to one minute
The comment period expires October 3, 2022.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.