SEC Approves FINRA Rule Amendments to Accelerate TRACE Reporting on Certain US Treasuries

The SEC approved FINRA rule amendments to accelerate the reporting on TRACE of transaction information in the market for certain U.S. Treasury Securities.

FINRA amended its Rules 6710 ("Definitions"), 6750 ("Dissemination of Transaction Information") and 7730 ("Trade Reporting and Compliance Engine (TRACE)"). The amended rules will (i) provide for end-of-day dissemination of data for individual transactions in U.S. Treasury Securities that are "On-the-Run Nominal Coupons" with caps for large trades and (ii) include U.S. Treasury Securities within the existing fee structure for end of day and historic TRACE data.

In a statement, SEC Chair Gary Gensler said that the amendments enable the public dissemination of trade-by-trade transaction details in the U.S. Treasury market, which will improve post-trade transparency. He said "this is an important step towards bringing the Treasury market’s post-trade transparency closer to that which has benefited investors in the corporate, municipal, and mortgage bond markets."