Technical Notice

Changes to the New Issue Form for Set-up of TRACE-Eligible Securities

December 12, 2013

On Monday, December 23, 2013, FINRA will modify the TRACE New Issue form, which is available through the FINRA Firm Gateway.

For mortgage-backed securities (MBS) a new flag for Puerto Rico Serial Notes will be displayed on the form if the agency selected is Ginnie Mae 1. Firms will be required to select whether the security they are entering is a Puerto Rico Serial Note.

For collateralized mortgage obligations (CMO) and asset-backed securities (ABS) the 144A flag will no longer appear within the main portion of the form. Instead the 144A flag will appear in the grid portion of the form so that the 144A designation may be identified on each tranche entered on the form.

In addition, at the close of business on Friday, December 20, 2013, FINRA’s Firm Gateway will implement a process that will delete all forms which were set to “Draft” status prior to December 20, 2013.

Please direct questions regarding this notice to FINRA Operations at (866) 776-0800.