Regulatory Notice 07-61

SEC Approves Exemption from TRACE Reporting Requirements for Certain "Derivative-Related Transactions"; Effective Date: December 13, 2007

Executive Summary

Effective December 13, 2007, "Derivative-Related Transactions" are exempt from the TRACE reporting requirements. Derivative-Related Transactions are transactions in TRACE-eligible securities resulting from the exercise or settlement of an option or a similar instrument, or the termination or settlement of a credit default swap (CDS), other type of swap or a similar instrument. At the same time, FINRA has made conforming amendments to the definition of "reportable TRACE transaction" in NASD Rule 6210(c).1

The text of NASD Rule 6230(e) and NASD Rule 6210(c), as amended and approved by the SEC on October 26, 2007, is set forth in Attachment A of this Notice. Also, FINRA is rescinding NASD Notice to Members (NTM) 05-77 (November 2005), which concerns TRACE reporting requirements for such transactions, effective December 13, 2007.2

1 See Securities Exchange Act Release No. 56709 (October 26, 2007), 72 FR 61924 (November 1, 2007); File No. SR-FINRA-2007-07.

2 See NASD Notice to Members 05-77 (November 2005).

 

Notice 07-61 supersedes NTM 05-77