SEC Announces the Designation of a Longer Period for Commission Action Regarding FINRA-Proposed Rule Change Relating to TRACE Reporting and Asset-Backed Securities

The SEC announced a designation of a longer period for commission action regarding a FINRA-proposed rule change relating to TRACE reporting and the dissemination of transactions in additional asset-backed securities. The proposed rule change was published for comment in the Federal Register on November 26, 2013; according to the SEC, it only received one comment on the proposal. Accordingly, the SEC announced a longer period for action and stated that it would approve or disapprove the proposed rule change by February 24, 2014.The proposed rule change would amend FINRA Rule 6700, which governs the dissemination of information on Asset-Backed Securities transactions. The proposed rule change would also make a good number of technical changes to the relevant trade reporting rules. As part of these changes, FINRA proposes to rename the broad group of securities currently defined as "Asset-Backed Securities" to "Securitized Products." FINRA would then more narrowly define "Asset-Backed Securities" (securities backed by assets such as credit card receivables or student or auto loans).

See: SEC Designation of a Longer Period for Commission Action.Related news: FINRA Proposes Rule Relating to TRACE Reporting and the Dissemination of Transactions in Asset-Backed Securities (November 13, 2013); SIFMA Submits Comments Regarding FINRA-Proposed Rule Relating to TRACE Reporting of Asset-Backed Securities (December 18 2013).