FINRA proposed the expansion of the Trade Reporting and Compliance Engine ("TRACE") reporting rules to include most secondary market transactions in marketable U.S. Treasury Securities ("Treasuries"). Transaction information in these securities would not be disseminated to the public.
FINRA specified that the proposed rule change would require FINRA members to report transactions in Treasuries, including "When-Issued Transactions" on the same day as such transaction occurred on an end-of-day basis, in an effort to provide more "real-time" data on the U.S. Treasuries market. Under this proposal, reportable transactions in Treasuries executed on a business day at or after 12:00:00 a.m. Eastern Time and up until 5:00:00 p.m. Eastern Time must be reported the same day; whereas transactions executed on a business day after 5:00:00 p.m., or on a Saturday, a Sunday, a federal or religious holiday or other day on which the TRACE system is not open at any time during that day, must be reported no later than the next business day. The proposal would not require transactions that are a part of the U.S. Treasury's auction process or transactions in U.S. Treasury savings bonds to be reported to TRACE.
The proposed rule change also would codify a long-standing FINRA interpretation that transactions for all TRACE-Eligible Securities repurchases and reverse repurchases are not reportable to TRACE.
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