Effective Dates Set for FINRA Rule Shortening TRACE Reporting Time for U.S. Treasuries

FINRA set effective dates for amendments to a rule on Trade Reporting and Compliance Engine ("TRACE") reporting period requirements for transactions in U.S. Treasury Securities.

The amendment to reduce the trade reporting timeframe will become effective on May 15, 2023. The amendment on the "granularity of execution timestamps" and the changes to the TRACE FAQs to "standardize price reporting" will take effect on November 6, 2023.

As previously covered, the rule would require firms to (i) report Treasury transactions as soon as practicable, and if executed when TRACE is open, no later than 60 minutes after execution and (ii) report Treasury transactions to TRACE in the finest increment of time captured by the system used to execute the transaction, but would not apply to firms that average less than $10 million of trade a day. Firms that execute trades while TRACE is closed would be required to report trades within 60 minutes after TRACE reopens.