Expanded reporting of U.S. Treasury security transactions to the FINRA Trade Reporting and Compliance Engine ("TRACE") commenced on July 10, 2017. FINRA stated that under the revised TRACE Rules, most secondary market transactions in U.S. Treasury securities are now reportable to TRACE. The implementation of this change will help regulators to understand and surveil transactions in the U.S. Treasury market. FINRA President and CEO Robert W. Cook emphasized the importance of this development:
"The Treasury market is the deepest, most liquid and most widely followed government-securities market in the world, and it is critical that regulators receive the data necessary to inform effective oversight of the market."
FINRA will include the newly obtained information in the TRACE regulatory feed that it provides to federal financial agencies, but noted that it is not (i) publicly disseminating information on transactions in Treasuries or (ii) charging transaction fees on Treasuries.
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