FINRA to Shorten Trade Reporting Time for U.S. Treasuries

The SEC approved a FINRA proposal to amend FINRA Rule 6730 ("Transaction Reporting") to shorten the Trade Reporting and Compliance Engine ("TRACE") reporting period requirements for transactions in U.S. Treasury Securities.

FINRA members will be required to (i) report Treasury transactions to TRACE in the finest increment of time captured by the system used to execute the transaction (though this requirement would not apply to those firms that average less than $10 million of trade a day); and (ii) report Treasury transactions as soon as practicable, and if executed when TRACE is open, no later than 60 minutes after execution. Trades done when TRACE is closed would generally be required to be reported within 60 minutes after TRACE reopens.

FINRA stated that it will announce the effective date via Regulatory Notice and that the effective date will be no later than 365 days from publication of the notice.

Tags