The SEC published in the Federal Register a FINRA proposal amending Rule 6730 ("Transaction Reporting") that would provide additional transparency into delayed Treasury spot and portfolio trades through the use of "specific modifiers." Comments on the proposal must be received by December 28, 2021.
As previously covered, the proposal would amend Rule 6730 to:
- increase transparency into delayed Treasury spot trades by requiring members to (i) "append a new modifier when reporting a delayed Treasury spot trade" and (ii) report the time for the agreed-upon spread for a delayed Treasury spot trade; and
- increase transparency into portfolio trades by requiring members to append a new modifier if reporting a transaction in a corporate bond (i) is executed between only two parties, (ii) involves a basket of corporate bonds of at least 10 unique issues, and (iii) is for a single agreed price for the entire basket.
If the SEC approves the proposal, FINRA will notify market participants in the Federal Register within 90 days.
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.
