FINRA notified member firms that the SEC approved a FINRA proposal to amend FINRA Rule 6700 Series and the Trade Reporting and Compliance Engine ("TRACE") dissemination protocols. The amendments will become effective on March 20, 2017.
News & Insights
The SEC approved a FINRA proposal that amends the TRACE protocols to (i) require the dissemination of transactions in collateralized mortgage obligations ("CMOs"), and (ii) shorten the trade-reporting timeline for CMO transactions from end-of-day to within 60 minutes of execution.
The SEC solicited comment on a FINRA proposal to amend the FINRA Rule 6700 Series and the Trade Reporting and Compliance Engine dissemination protocols.
FINRA proposed amending its protocols to (i) require the dissemination of transactions in collateralized mortgage obligations and (ii) shorten the trade-reporting timeline for CMO transactions from end-of-day to within sixty minutes of execution.
Using the Trade Reporting and Compliance Engine ("TRACE"), FINRA will begin to disseminate information for so-called specified pool transactions in agency pass-through MBS issued by Fannie Mae, Freddie Mac, and Ginnie Mae, as well as in securities backed by loans guaranteed by the Small Business Administration ("SBA"). TRACE will disseminate transactional information such as the time of the trade, price, and volume. Furthermore, FINRA has also made information available on historic transactions in agency pass-through MBS and SBA-Backed asset-backed securities ("ABS") traded in specified pool