Effective Date Set for FINRA Rule Requiring TRACE Reporting of U.S. Dollar-denominated Foreign Sovereigns
The effective date for a FINRA rule requiring members to report transactions in U.S. dollar-denominated foreign sovereign debt securities to the Trade Reporting and Compliance Engine ("TRACE") will be November 6, 2023.
As previously covered, the rule change expanded the definition of a TRACE-eligible security to include the term "Foreign Sovereign Debt Security," which FINRA defined as "a debt security issued or guaranteed by the government of a foreign country, any political subdivision of a foreign country or a supranational entity." Member firms are only required to report transactions in U.S. dollar-denominated foreign sovereign debt securities, and relevant transaction reporting fees still apply.