TRACE Enhancements Cover Agency Debt; Proposed Amendments to Cover Asset-Backed Securities

November 05, 2009
The Financial Industry Regulatory Authority (“FINRA”) has taken several steps within the past year to further increase transparency in the debt securities market. As part of this movement toward greater transparency, the Securities and Exchange Commission approved FINRA’s proposal to increase the scope of FINRA’s Trade Reporting and Compliance Engine (“TRACE”) reporting requirements to include agency debt and primary market transactions. FINRA also recently submitted to the SEC for approval a proposal that would expand the TRACE reporting requirements to include asset-backed securities. This update discusses the recent enhancements and proposed amendments to the TRACE reporting requirements.