TRACE Reporting of Quantity and Price of Equity-Linked Notes

FINRA wishes to clarify the issue of reporting to TRACE quantity and price of TRACE-eligible securities that are equity-linked notes (ELNs).

 

Equity linked notes (ELNs) in most cases differ from corporate bonds and other TRACE-eligible securities in unit count and quote conventions. This notice reminds firms of how to report these ELN transactions to TRACE with regard to price, commission and quantity (size):

  • Price: For an ELN, price is a dollar value (instead of a percentage of par, as is typical for other TRACE-eligible securities). The price of an ELN should be reported as the dollar price per share. For example, the price of an ELN bought (or sold) at $7 per share should be reported as 7.00.
  • Commission: For an ELN, commission should be reported as the total dollar value of commission charged, as is the case for all TRACE-eligible securities. For example, if a commission of $25 is charged, the commission should be reported as 25.00.
  • Quantity: For ELNs, Firms should report quantity as number of shares traded times the price expressed as a dollar value (as described above). If, for example, 200 shares are traded at $7 per share, the quantity should be reported as 1400.00.

 

Questions
Please direct questions concerning this notice via email to FINRA Product Management.