SEC Approves Amendments to FINRA TRACE Rules and Dissemination Protocols

The SEC approved amendments to FINRA Rule 6700 Series and TRACE dissemination protocols. These amendments provide for the dissemination of trade information as to agency pass-through mortgage-backed securities that are traded in specified pool transactions (MBS specified pool transactions) and SBA-backed ABS that are traded either in specified pool transactions or TBA (collectively, SBA-backed ABS transactions). FINRA also reduced the reporting periods for MBS specified pool and SBA-backed ABS transactions to improve the timeliness of the transaction information to be disseminated, and incorporated certain other amendments.

In making the rule changes, FINRA rejected SIFMA's comment letter to let the TRACE Rules stand as they are. See Related News Story: SIFMA Letter to FINRA Says TRACE Is Good as Is.

Effective Date: July 22, 2013.

See: Regulatory Notice 12-56: SEC Approves Amendments to TRACE Rules and Dissemination Protocols to Disseminate Specified Pool Transactions and SBA-Backed ABS Transactions and to Reduce the Time to Report Such Transactions.See also: Text of amended rules.