NASD Notice to Members 05-28 - April 2005

NASD Reminds Members that the TRACE Reporting Period Will Be Reduced to 15 Minutes on July 1, 2005, and Rescinds Interpretive Guidance Regarding Rejected TRACE Transaction Reports

Executive Summary

On June 14, 2004, the Securities and Exchange Commission (SEC or Commission) approved amendments to Rule 6230(a) of the Trade Reporting and Compliance Engine (TRACE) Rules, the Rule 6200 Series, reducing the reporting period in two stages.1 In the first stage (Stage One), effective on October 1, 2004, the period to report a transaction in a TRACE-eligible security was reduced from 45 minutes to 30 minutes. NASD is reminding members that the second stage (Stage Two), which reduces the period from 30 minutes to 15 minutes, will become effective on July 1, 2005. NASD is also rescinding interpretive guidance regarding the resubmission of rejected TRACE transaction reports. Rule 6230, as amended by Stage Two rule changes only, is set forth in Attachment A.

 

Questions concerning this Notice should be directed to TRACE Feedback; Sharon K. Zackula, Associate General Counsel, Office of General Counsel, Regulatory Policy and Oversight, at (202) 728-8985; or Elliot Levine, Associate Vice President, Chief Counsel, Transparency Services, Markets, Services and Information, at (202) 728-8405.