FINRA Proposes to Amend TRACE Rules

FINRA filed with the SEC a proposal to amend Trade Reporting and Compliance Engine ("TRACE") rules to require members to identify transactions with non-member affiliates, as well as to change how FINRA disseminates a subset of these transactions.

Specifically, FINRA is proposing to amend FINRA 6700 Series rules: (i) to add a new contra-party type to be used in TRACE reports to identify transactions with non-member affiliates, and (ii) to require firms to identify when transactions with non-member affiliates meet specified conditions, so that FINRA can suppress dissemination of those trades.

See: Text of Proposed Rule Change; FINRA Rule Filing.