SIFMA Urges Delay in Expansion of TRACE Requirements on Foreign Sovereign Securities

SIFMA expressed concern over FINRA's proposed amendments to require FINRA-member broker-dealers to report transactions in U.S. dollar-denominated foreign sovereign and supranational ("SSA") securities to the Trade Reporting and Compliance Engine ("TRACE") system on a same-day basis. (See previous coverage.)

In its comment letter, SIFMA argued that TRACE would not provide a clear picture of SSA market activity, nor collect comprehensive information regarding SSA trading. SIFMA recommended that FINRA utilize a T+1 reporting requirement for SSA securities. Further, SIFMA argued that same-day reporting is impractical because not all required information is immediately accessible to broker-dealers. SIFMA also urged FINRA to implement the amendment over 15 months to allow sufficient time to resolve logistical issues and conceive an approach to dissemination.