|Wednesday, November 28, 2001
Nancy A. Condon
NASD Announces Nes Trace Implementation Date
Washington, DC — The National Association of Securities Dealers, Inc. (NASD®) announced today that July 1, 2002, will be the new implementation date for its Trade Reporting and Compliance Engine (TRACESM) system. TRACE is a new regulatory system that will capture the reporting and provide dissemination of eligible corporate bond transactions. The NASD had announced last month that the original implementation date was to be postponed beyond February 4, 2002.
Since September 11, the NASD has worked with its members to help the securities industry recover from the attacks. As part of this process, the NASD decided to delay the TRACE implementation date to allow its members the time they need to re-establish, to the extent possible, normal business operations. The NASD determined that the original February 2002 implementation date would have been a hardship on the industry in its efforts to recover from September 11. As firms become ready to begin testing, they will be able to schedule testing slots with the NASD from February through June of next year.
In January 2001, the Securities and Exchange Commission approved rules requiring NASD members to report over-the-counter secondary market transactions in eligible fixed-income securities to NASD. The rules will also require NASD to disseminate eligible transaction data. TRACE will be the NASD-developed system that captures and disseminates this bond transaction data.
The NASD is the largest securities industry, self-regulatory organization in the United States. It is the parent organization of NASD Regulation, Inc.; the American Stock Exchange, LLC; and NASD Dispute Resolution, Inc. For more information about TRACE, please visit http://www.nasd.com/mkt_sys/trace_info.asp. For more information about NASD please visit www.finra.org.