FINRA Requests Comment on Proposal to Require TRACE Reporting of Foreign Sovereign Debt Transactions

FINRA requested comment on a proposal to require broker-dealers to report transactions in U.S. dollar-denominated foreign sovereign debt securities to the Trade Reporting and Compliance Engine ("TRACE").

Pursuant to the proposed amendments to FINRA Rule 6710 ("Definitions"), Rule 6730 ("Transaction Reporting") and Rule 6750 ("Dissemination of Transaction Information"), broker-dealers would be subject to the same-day reporting of transactions in U.S. dollar-denominated foreign sovereign debt securities, though FINRA would not publicly disseminate reports of these transactions. For purposes of the proposed rule amendments, a "foreign sovereign debt security" would be defined as a "debt security issued or guaranteed by the government of a foreign country, any political subdivision of a foreign country, or a supranational entity," such as the International Bank for Reconstruction and Development, the Inter-American Development Bank, the Asian Development Bank, the African Development Bank, the International Finance Corporation or the European Investment Bank.