SEC To Take More Time to Consider Amendments to TRACE Proposal on Treasuries
Commentary by Steven Lofchie
The SEC designated February 7, 2024 as its new deadline to act on FINRA proposed amendments to the Trade Reporting and Compliance Engine ("TRACE") rules. The previous deadline was December 24, 2023.
The proposed amendments would require FINRA to disseminate information on certain Treasury security transactions. As previously covered, the proposed amendments to TRACE Rules 6710 ("Definitions") and 6750 ("Dissemination of Transaction Information") would (i) provide for FINRA to disseminate information on transactions in U.S. Treasury securities reported to TRACE that are "On-the-Run Nominal Coupons" on an end-of-day basis and (ii) indicate whether large transactions meet specified size thresholds (or "dissemination caps"), and not disseminate the actual dollar value of such large transactions.
Commentary
These proposed rule amendments take place amid substantial changes the SEC is making in the U.S. government securities markets including proposed requirements on central clearing of certain repo and cash market transactions in U.S. Treasuries.