SIFMA Submits Comments Regarding FINRA-Proposed Rule Relating to TRACE Reporting of Asset-Backed Securities

SIFMA has submitted comments to the SEC regarding the FINRA-proposed rule to begin dissemination of data for transactions in asset-backed securities ("ABS") and non-Agency Commercial Mortgage Backed Security ("CMBS"). The rule proposal would implement shorter "reporting timeframes for ABS transactions, and real-time dissemination of trade information. Additionally, the proposal would amend the definition of "ABS."

In the letter, SIFMA stated that its members agree with FINRA regarding benefits to price discovery as a result of shorter timeframes for disseminating information. However, SIFMA voiced concerns that the proposal could negatively impact market liquidity in specified pool and high-yield markets, and noted that previous proposals have done so. SIFMA also requested that the SEC not approve the proposal and engage in further discussion with the industry as to how best to preserve ABS market liquidity.

See: SIFMA Comment Letter.See also: FINRA Proposed Rule Change to Amend Rule 6700 Series and TRACE Dissemination Protocols.