Reporting Corporate and Agency Debt to New TRACE Platform

Effective February 6, 2012, FINRA will migrate corporate and agency debt (Corporates and Agencies) trade reporting to a new technology platform. The new platform will conform only to the new trade data formats included in the CTCI and FIX protocols, and via the TRAQS secure website for Corporate and Agency Debt. This means that any transaction that was entered in the legacy TRACE (pre-February 6, 2012) Corporate and Agency system will not be available for cancellation or modification via the new formats. Firms instead must use the Reversal function to revise trades entered before February 6, 2012.

 

In preparation for the migration, FINRA recommends that firms download their legacy trade data at the end of each day leading up to the migration date. Firms can download their legacy trade data via the Trade Report Data function on the legacy TRACE website. The Trade Report Data function enables the reporting party or their Give-Up firms to search and view trades that have been previously accepted by TRACE.


Below are examples of the processes to revise trades once the migration is complete.

 

FunctionScenario—Trades entered prior to/on Feb 3, 2012Scenario—Trades entered on/after Feb 6, 2012
Trade CancelUse Reversal function for any trade in TRACEUse Cancel function up to T-20
Trade CorrectionUse Reversal function for any trade in TRACE and re-enter trade as-of with an execution date of the original execution dateUse Correction function up to T-20 and re-enter trade as-of with an execution date of the original execution date
Trade ReversalApply in scenarios aboveUse Reversal function after T-20

 

Trade Reversal action examples for trades entered before the migration is complete:

 

Users reversing legacy trades are required to submit an Original Control Date. (Firms should use the trade report date when the original trade was submitted in the legacy system, as the Original Control Date (conforming to the YYYYMMDD Control Date format).

 

ScenarioDesired user actionRequired user action
1 – On February 2, 2012, your firm enters a trade in TRACE to sell 100 bonds.
Side – Sell
Quantity – 100
Control # – 0330000001
Cancel trade on February 6, 2012.Use the Reversal function. Side – Sell
Quantity – 100000.00 ( par value dollar format)
As-of – Y
Orig Control # – 0330000001
Orig Control Date – 20120202

*All other relevant trade details from original trade are required in the Reversal entry.
2 – On October 1, 2010, your firm enters a trade in TRACE to buy 10000 bonds.
Side – Buy
Quantity – 10000
Control # 2740000025.
Cancel this trade on February 10, 2012.Use the Reversal function.
Side – Buy
Quantity – 10000000.00 (par value dollar format)
As-of – Y
Orig Control # – 2740000025
Orig Control Date – 20101001
* All other relevant trade details from original trade are required in the Reversal entry.
3 – On February 3, 2012, your firm enters a trade in TRACE to buy 1000 bonds at a price of 95.
Side – Buy
Quantity – 1000
Price – 95
Control # – 0340000002
Correct trade to reflect a price of 95.25 on February 7, 2012.Use the Reversal function.
Side – Buy
Quantity – 1000000.00 (par value dollar format)
Price – 95
As-of – Y
Orig Control # – 0340000002
Orig Control Date – 20120203
* All other relevant trade details from original trade are required in the Reversal entry.

Enter a New trade report.
Side – Buy
Quantity – 1000000.00 (par value dollar format)
Price – 95.25
As-of – Y
Execution Date – 02032012
* All other relevant trade details for the new trade are required.
4 – On February 1, 2012, at 10:00, your firm enters a trade in TRACE to buy 200 bonds with a next day settlement modifier.
Side – Buy
Quantity – 200
Settlement Modifier – ND
Control # – 0320000012
Cancel trade on February 7, 2012.Use the Reversal function.
Side – Buy
Quantity – 200000.00 (par value dollar format)
As-of – Y
Orig Control # – 0320000012
Orig Control Date – 20120201
Settlement Date: 02022012
* All other relevant trade details from original trade are required in the Reversal entry.
5 – On January 20, 2012, your firm enters a trade in TRACE to buy 600 bonds with an extended settlement (5 days) modifier.
Side – Buy
Quantity – 600
Settlement Modifier – S05
Control # – 0200000005
Cancel trade on February 7, 2012.Use the Reversal function.
Side – Buy
Quantity – 600000.00(par value dollar format)
As-of – Y
Orig Control # – 0200000005
Orig Control Date – 20120120
Settlement Date: 01272012
* All other relevant trade details from original trade are required in the Reversal entry.
6 – On January 30, 2012, your firm enters a trade in TRACE to buy 100 bonds with a cash settlement modifier.
Side – Buy
Quantity – 100
Settlement Modifier – C
Control # – 0300000009
Cancel trade on February 8, 2012.Use the Reversal function.
Side – Buy
Quantity – 100000.00(par value dollar format)
As-of – Y
Orig Control # – 0300000009
Orig Control Date – 20120130
Settlement Date: 01302012
* All other relevant trade details from original trade are required in the Reversal entry.
7 – On February 1, 2012, your firm enters an agency trade in TRACE to sell 1000 bonds with a commission of a quarter point per bond.
Side – Sell
Quantity – 1000
Price – 90
Commission – .25
Control # – 0320000010
Correct price to 98 on trade on February 10, 2012.Use the Reversal function.
Side – Sell
Quantity – 1000000.00(par value dollar format)
Price – 90
Commission – 2500.00
As-of – Y
Orig Control # – 0320000010
Orig Control Date – 20120201
* All other relevant trade details from original trade are required in the Reversal entry.

Enter a New trade report.
Side – Sell
Quantity – 1000000.00 (par value dollar format)
Price – 98
Commission – 2500.00
As-of – Y
Execution Date – 02012012
* All other relevant trade details for the new trade are required.
8 – On October 17, 2011, your firm enters a trade in TRACE for an Equity Linked Note to sell 500 shares at a price of 9.75.
Side – Sell
Quantity – 500
Price – 9.75
Control # – 2900000020
Cancel trade on February 8, 2012.Use the Reversal function.
Side – Sell
Quantity – 4875.00 (ELN qtyxprice dollar par value format)
Price – 9.75
As-of – Y
Control # – 2900000020
Control Date – 20111017
* All other relevant trade details from original trade are required in the Reversal entry.

 

Please direct questions concerning this notice via email to FINRA Product Management or call (866) 899-2107.