finra

FINRA

For Release:
Contacts:
Wednesday, October 31, 2001
Nancy A. Condon
202-728-8379
Michael Shokouhi
202-728-8304



NASD Postpones TRACE Implementation Date

Washington, DC – The National Association of Securities Dealers, Inc. (NASD®) has postponed the implementation of its Trade Reporting and Compliance Engine (TRACE) system in order to allow firms adequate time to put reporting systems and mechanisms in place; progress that was hindered by the September 11th attacks.  TRACE is a regulatory system that will capture the reporting and dissemination of eligible corporate bond transactions.

 

On January 23, 2001, the Securities and Exchange Commission approved proposed rules that will require NASD members to report over-the-counter secondary market transactions in eligible fixed income securities to the NASD and also subject certain transaction reports to dissemination. TRACE is the NASD-developed vehicle that facilitates this mandatory reporting.

 

The scheduled milestones for the bond transparency initiative were to have begun with NASD member firms contacting NASD by November 1 to schedule testing, with the testing window opening in December and running through January, and actual implementation of regulatory reporting beginning on February 4, 2002.  The exact startup date will be announced in the near future.

 

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 the NASD and its subsidiaries, please visit the following Web sites: www.nasd.com; www.nasdr.com; www.amex.com; www.nasdadr.com.