FINRA To Disseminate Additional Trade Reporting for USTs

FINRA adopted amendments to disseminate individual transactions in active U.S. Treasury securities at the end of the day. The amendments apply to Rules 6710 ("Definitions"), 6750 ("Dissemination of Transaction Information") and 7730 ("Trade Reporting and Compliance Engine (TRACE)").

The amended rules will 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. (FINRA explained that "on-the-run nominal coupons do not include Treasury bills, STRIPs, Treasury Inflation-Protected Securities, floating rate notes or any U.S. Treasury security that is a Treasury note or bond paying a fixed rate nominal coupon that is not the most recently issued U.S. Treasury security of a given maturity.") The end of day data will include: the price and size of the trade, the counterparty type, a flag to indicate whether the trade was executed on an ATS and other trade modifiers and indicators. FINRA stated that end of day data will not include the market participant identifier or other identifying information regarding the parties to the trade.

The amended rules also provide for "a new Historic TRACE Data Set for Treasury securities." FINRA said the historic TRACE data "will contain transaction information on a six-month delayed basis," and include "transactions contained in the Treasury End-of-Day TRACE Transaction File for the relevant period, with uncapped transaction sizes."

The amendments relating to the end-of-day data products take effect on March 25, 2024, and the amendments relating to the historic data product take effect on April 1, 2024.