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.

 

Function	Scenario—Trades entered prior to/on Feb 3, 2012	Scenario—Trades entered on/after Feb 6, 2012
Trade Cancel	Use Reversal function for any trade in TRACE	Use Cancel function up to T-20
Trade Correction	Use Reversal function for any trade in TRACE and re-enter trade as-of with an execution date of the original execution date	Use Correction function up to T-20 and re-enter trade as-of with an execution date of the original execution date
Trade Reversal	Apply in scenarios above	Use 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).

 

Scenario	Desired user action	Required 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.