NASD Notice to Members 03-12 - February 2003

SEC Approves Amendments to TRACE Rule 6250 and Other TRACE Rules: Transaction Information to be Disseminated on More Than 4,000 Corporate Debt Securities

Executive Summary

On January 31, 2002, the Securities and Exchange Commission (SEC or Commission) approved amendments to Rule 6250 of the Trade Reporting and Compliance Engine (TRACE) rules, the Rule 6200 Series. The amendments to TRACE Rule 6250 will allow NASD to begin disseminating transaction information on more than 4,000 qualifying Investment Grade corporate debt securities. The SEC also approved minor changes to Rule 6210(e), the definition of "customer to a transaction," and Rule 6260. The rules, as amended, are set forth in Attachment A.

 

The amendments to the TRACE Rules will become effective on March 3, 2003, with one exception. New paragraph (a)(4) of Rule 6250, providing for the dissemination of 90 corporate debt securities that are rated "triple-B," will become effective shortly thereafter, on a date to be announced in a future Notice to Members. Currently, NASD is in the process of identifying the 90 specific securities that will be subject to dissemination, and will announce the effective date of Rule 6250(a)(4) when the process is complete.

 

Questions concerning this Notice should be emailed to tracefeedback; Elliot Levine, Chief Counsel, Market Operations, Regulatory Services and Operations, at (212) 858-4174; or Sharon K. Zackula, Assistant General Counsel, Office of General Counsel, Regulatory Policy and Oversight, at (202) 728-8985.