FINRA Proposes Rule Relating to TRACE Reporting and the Dissemination of Transactions in Asset-Backed Securities

FINRA has filed a proposed rule with the SEC to amend FINRA Rule 6700, which governs the dissemination of information on Asset-Backed Securities transactions. The major import of the rule changes is to reduce the time between trade execution and report. The proposed rules changes would also make a good number of technical changes to the relevant trade reporting rules. As part of these changes, FINRA proposes to rename the broad group of securities currently defined as "Asset-Backed Securities" to "Securitized Products." FINRA would then more narrowly define "Asset-Backed Securities" (securities backed by assets such as credit card receivables or student or auto loans). The new term "Securitized Product" would include those securities as well as securities backed by mortgages and commercial loans and collateralized debt obligations. Somewhat different reporting requirements would apply to Asset-Backed Securities and to other Securitized Products.

See: Text of Proposed Rule Change; FINRA Press Release.